In the Money

1. For a call option, when the option's strike price is below the market price of the underlying asset.

2. For a put option, when the strike price is above the market price of the underlying asset.



In other words, this is when your stock option is worth money and you can turn around and sell or exercise it for a profit.



Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.

Alternatives to Closing Below Intrinsic Value - Understanding how options work and the markets they trade in will help you get a better price for your option.
Related Terms

At the Money

Call Option

Deep in the Money

Intrinsic Value

Option

Out of the Money

Put Option

Strike Price

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