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 price of the underlying asset is higher than the option's strike price. This means the option has positive intrinsic value, as the holder could exercise it for an immediate profit.

For example, a Bitcoin call with a $60,000 strike is ITM if Bitcoin is trading at $62,000. The intrinsic value would be $2,000.

What Is “In-the-Money” for a Call Option, and What Does It Imply for Its Intrinsic Value?
What Does It Mean for a Call Option to Be “In-the-Money”?
What Does It Mean for a Put Option to Be “Out-of-the-Money”?
How Is the Intrinsic Value of an ITM Put Option Calculated?