Deep in the money

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Deep in the money

A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price. Often substantially below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security.

Deep in the Money

1. A call option with a strike price less than half the value of the underlying asset.

2. A put option with a strike price more than double the value of the underlying asset.

In both these situations, the option contract has intrinsic value. It is unlikely that the option will be out of the money by the time the option is exercised.
References in classic literature ?
At the same moment the bell sounded deep in the wood, so clear and solemnly that five or six determined to penetrate somewhat further.
Bear in mind, too, that under these untoward circumstances he has to cut many feet deep in the flesh; and in that subterraneous manner, without so much as getting one single peep into the ever-contracting gash thus made, he must skilfully steer clear of all adjacent, interdicted parts, and exactly divide the spine at a critical point hard by its insertion into the skull.
Whoever camps for a week in summer by the shore of a pond, needs only bury a pail of water a few feet deep in the shade of his camp to be independent of the luxury of ice.
But he scornfully threw it aside, and bade his Spirits take her to a colder cell, deep in the earth; and there with harsh words they left her.
In the midst of them was a terrific explosion, seemingly from deep in the earth.
Above, the bodies of the dead and the dying--French, Spanish, and Aragonese--lay thick and thicker, until they covered the whole ground two and three deep in one dreadful tangle of slaughter.
The green growths in the sides of the ravines burned up to broken wires and curled films of dead stuff; the hidden pools sank down and caked over, keeping the last least footmark on their edges as if it had been cast in iron; the juicy-stemmed creepers fell away from the trees they clung to and died at their feet; the bamboos withered, clanking when the hot winds blew, and the moss peeled off the rocks deep in the Jungle, till they were as bare and as hot as the quivering blue boulders in the bed of the stream.
The river-turtles had long ago been killed by Bagheera, cleverest of hunters, and the fish had buried themselves deep in the dry mud.
It was a pointed stick, such as they put in the foot of a pit-trap," said Hathi, "and throwing it, he struck the First of the Tigers deep in the flank.
We drove up to this skeleton to tie our horses, and then I saw a door and window sunk deep in the drawbank.
We were so deep in the grass that we could see nothing but the blue sky over us and the gold tree in front of us.
a chunk of ceiling dropped onto a battery charger deep in the mine's tunnels.