What Is “In the Money” for a Crypto Put Option?
A crypto put option is "in the money" (ITM) when the strike price is higher than the current market price of the underlying cryptocurrency. This means the holder can sell the crypto at a price higher than its current trading value.
Being ITM gives the option intrinsic value, which is the amount immediately realizable if the option were exercised.
Glossar
Intrinsic Value
Valuation ⎊ This represents the in-the-money amount of an option, calculated as the difference between the spot price and the strike price, if positive, otherwise zero.
Crypto Put Option
Bearish Instrument ⎊ A Crypto Put Option grants the holder the right, but not the obligation, to sell the underlying digital asset at the fixed strike price on or before expiration.
Market Price
Valuation ⎊ Current rate at which a digital asset is being traded on an exchange reflects the collective sentiment of all participants.
Strike Price
Reference ⎊ The Strike Price is the predetermined reference level set at the contract's inception against which the underlying crypto asset's spot price is compared at expiration or exercise.
Current Market Price
Valuation ⎊ The current market price represents the most recent transaction price at which an asset was bought or sold on an exchange.