What Is the Difference between "In-the-Money" and "Out-of-the-Money" Options? ▴ Learn

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.

What Is Meant by an Option Being ‘In-the-Money’ (ITM), ‘At-the-Money’ (ATM), or ‘Out-of-the-Money’ (OTM)?

What Is the Concept of “Moneyness” (In-the-Money, Out-of-the-Money) for a Call Option?

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

Define “In-the-Money,” “At-the-Money,” and “Out-of-the-Money” for a Written Call Option