When Does an Option Become 'In-The-Money' (ITM)? ⎊ Path

When Does an Option Become ‘In-The-Money’ (ITM)?

An option is In-The-Money (ITM) when exercising it immediately would result in a profit (it has Intrinsic Value). A Call option is ITM when the underlying asset's price is above the strike price.

A Put option is ITM when the underlying asset's price is below the strike price. This is the goal for an option holder.

How Does an In-the-Money Covered Call Differ from an Out-of-the-Money Covered Call?

How Is Moneyness Different for Call Options versus Put Options?

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

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

Explain the Concept of ‘In-the-Money’ for Both Call and Put Options

How Does the Strike Price Relate to an Option Being “In-the-Money” (ITM)?

How Does an ATM Option Become ITM or OTM?

What Is ‘In the Money’ (ITM) for an Option?

Glossar

Delta Value

Measurement ⎊ Delta value is a first-order Greek measure quantifying the sensitivity of an option's price to changes in the underlying asset's price.