What Is the ‘Intrinsic Value’ of an ITM Call Option?
The Intrinsic Value of an In The Money (ITM) Call Option is the difference between the current market price of the underlying asset and the option's strike price. This is the immediate profit the option holder would realize if they exercised the option immediately.
An Out of The Money (OTM) or At The Money (ATM) option has zero intrinsic value.