What Is ‘In the Money’ (ITM) for an Option?
An option is 'in the money' (ITM) when exercising it immediately would result in a positive intrinsic value. For a call option, ITM means the underlying asset price is higher than the strike price.
For a put option, ITM means the underlying asset price is lower than the strike price. ITM options are generally more valuable than out-of-the-money options.
