In the Money (ITM)

May 25, 2021

“In the money” (ITM) is an expression that refers to an option that possesses intrinsic value. ITM thus indicates that an option has value in a strike price that is favorable in comparison to the prevailing market price of the underlying asset:

  • An in-the-money call option means the option holder has the opportunity to buy the security below its current market price.
  • An in-the-money put option means the option holder can sell the security above its current market price.