Skip to main content

What Does ‘In-the-Money’ Mean for a Call Option?

A Call option is "in-the-money" (ITM) when the current market price of the underlying asset is higher than the option's strike price. In this state, exercising the option would result in an immediate profit, ignoring the premium paid.

The intrinsic value of the option is positive.

What Is the Impact of “Vega” on a Long-Term Option?
What Is the Risk of Using Synthetic Assets (Derivatives) on a Blockchain?
How Do Covered Call Strategies Utilize the Concept of Time Decay?
What Is the Benefit of Using an NFT to Represent a Complex Financial Derivative?