What Does It Mean for an Option to Be “In-the-Money” (ITM)?
An option is "in-the-money" (ITM) when exercising it would result in a profit, ignoring the premium paid. For a call option, ITM means the underlying asset's price is above the strike price.
For a put option, ITM means the underlying asset's price is below the strike price. ITM options have intrinsic value equal to the difference between the strike and the current price.
