What Is the Relationship between Intrinsic Value and “In the Money” Status?
An option is "in the money" (ITM) if it possesses intrinsic value. Intrinsic value is the measure of how much profit the option holder would realize if they exercised the option immediately.
If an option is ITM, its intrinsic value is greater than zero. If it is "at the money" or "out of the money," its intrinsic value is zero.
