What Is the Difference between "In-the-Money" and "Out-of-the-Money" Options? ⎊ Path

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

An option is "in-the-money" (ITM) if exercising it immediately would result in a profit. For a Call Option, this means the asset price is above the strike price.

For a Put Option, the asset price is below the strike price. An option is "out-of-the-money" (OTM) if exercising it immediately would result in a loss, meaning the strike price is unfavorable relative to the current market price.

How Does the Concept of ‘Moneyness’ Relate to the Exercise of an Option?

What Is the Difference between an In-the-Money (ITM) and Out-of-the-Money (OTM) Option?

What Is the Difference between an ‘In-the-Money’ and ‘Out-of-the-Money’ Option?

Define In-The-Money (ITM) for Both a Call and a Put Option

What Is the Intrinsic Value of an OTM Option?

What Does “Out-of-the-Money” (OTM) Imply about an Option’s Intrinsic Value?

What Is an “In-the-Money” Option?

How Does an ITM Call Option Differ from an “Out-of-the-Money” (OTM) Call Option?