What Is the Concept of 'In the Money' (ITM) in Options Trading? ⎊ Path

What Is the Concept of ‘In the Money’ (ITM) in Options Trading?

An option is 'in the money' (ITM) if exercising it immediately would result in a profit. 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, which is the amount by which the option is profitable.

Under What Circumstances Would It Be Optimal to Exercise an American Option Early?

What Is the Difference between an “In-the-Money” (ITM) Call Option and a Put Option?

How Does the Dividend Yield of the Underlying Asset Affect the Value of an American Option?

How Does Selling a Put Option Relate to the Risk of a Covered Call (Put-Call Parity)?

What Is the Difference between “In-the-Money” and “Out-of-the-Money” Options?

Explain the Term “In-the-Money” for an Option

Under What Condition Would a Put Option Buyer Choose to Exercise Early?

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

Glossar

ITM

Definition ⎊ ITM, or In-the-Money, describes an option contract where the current market price of the underlying asset is favorable relative to the option's strike price.