What Does It Mean for an Option to Be “In the Money” (ITM)?
A call option is "in the money" (ITM) when the underlying asset's price is higher than the option's strike price. A put option is ITM when the underlying asset's price is lower than the option's strike price.
An ITM option has a positive intrinsic value, meaning it would be profitable to exercise immediately. Options that are ITM are more expensive due to this inherent value.
