| 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.
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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.
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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. |
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Related Terms
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