In the Money
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| (ITM) If you were to exercise an option and it would generate a profit at the time, it is known to be in-the-money. A put option with a strike price higher than the underlying futures price or a call option with a strike price lower than the underlying futures price. |
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Additional Comments:
A call option is inthe-money if the strike price is less than the market price of the underlying security.
A put option is in-the-money if the strike price is greater than the market price of the underlying security. |
Related Terms: | ||
Out of the Money Refers to an options contract that has no intrinsic value; for instance, a call option whose ... Intrinsic Value This is a measure of any real value to the option. The amount by which an ... At-The-Money (ATM): When the strike price of an option is the same as the current price of ... | ||
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