For an option, having a strike price which makes it profitable to exercise. For a call this is a strike below the market price, or for a put a strike above the market price
A call option whose strike price is below the current market price of the underlying security or commodity or a put option whose strike price is above the current market price of the underlying security or commodity Such an option has intrinsic value
A "Call" option is said to be "in the money" when the current market price is higher than the strike price A "Put" option is said to be "in the money" when the current market price is below the strike price of the option contract
A term describing any option that has intrinsic value A call option is in-the-money if the underlying security is higher than the striking price of the call A put option is in-the-money if the security is below the striking price
A call option is in the money when the strike price is less than the current price of the underlying instrument A put is when the strike price is greater
The relationship between an Option Strike price and the current price of the stock If a CALL option strike price is ABOVE the stock price, the option is said to be IN THE MONEY If a PUT option strike price is BELOW the stock price, the option is said to be IN THE MONEY This means the option has intrinsic value
Term used in options trading to describe a client’s position that would result in a profit if exercised at a particular point in time (See "At the Money," "Out of the Money")
Expression used for any option series with intrinsic value--the option's strike (exercise) price and market price of the underlying security are such that the holder can exercise the option at a profit For example, if a call option with a strike price of 30 and the underlying stock's market price is currently 33, the call is in the money A put option is considered in the money when the underlying stock is selling below the strike price Premiums and other transaction costs are not considered in determining whether the option is in the money or out of the money
An option is in the money when it has intrinsic value A call is in the money when the market price of the underlying stock is greater than the option's strike price A put is in the money when the market price of the underlying stock is lower than the option's strike price