What Does It Mean for an Option to Be 'In-the-Money' (ITM)? ▴ Learn

What Does It Mean for an Option to Be ‘In-the-Money’ (ITM)?

An option is 'in-the-money' (ITM) if exercising it immediately would result in a positive payoff. For a call option, this means the underlying asset's market price is higher than the strike price.

For a put option, the market price is lower than the strike price. An ITM option has intrinsic value, which is the amount by which it is in-the-money.

Explain the Concept of ‘In-the-Money’ for Both Call and Put Options

What Does It Mean for an Option to Be “Out-of-the-Money” (OTM)?

What Is the Concept of “Moneyness” (In-the-Money, Out-of-the-Money) for a Call Option?

Define ‘In-the-Money’ (ITM) for Both Call and Put Cryptocurrency Options