What Is the Difference between an In-the-Money and Out-of-the-Money Call Option for a DAO Seller?

An in-the-money (ITM) call option has a strike price below the current market price of the underlying token. An out-of-the-money (OTM) call option has a strike price above the current market price.

For a DAO selling an option, an ITM call yields a higher premium but carries a much higher risk of assignment. An OTM call yields a lower premium but is less likely to be exercised, allowing the DAO to keep both the token and the premium.