A put option that has a strike price higher than the underlying security price, or a call option with a strike price lower than the underlying security price. For example, if the March COMEX silver futures contract is trading at $6 an ounce, a March call with a strike price of $5.50 would be considered in the money by $0.50 an ounce. Related: Put. Antithesis of out-of-the-money.


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

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

In both these situations, the option contract has intrinsic value. If an option is deep in the money, it is unlikely that the option will be out-of-the money by the time the option is exercised.


Used to describe a call (put) option that has a strike price that is less (more) than the price of the underlying asset. If Convergys common stock is trading at $40 per share, a call option on Convergys with a strike price of $35 is in-the-money.


An option is in-the-money at any point up to expiration if the exercise price is below the market price of a call option or above the market price of a put option. That means an in-the-money option has value.

For example, if you hold an equity call option with a strike price of 50, and the current market price of the stock is $52, the option is in-the-money.

As the option holder, you could buy the stock at $50 and either sell it at $52 or add it to your portfolio. Or, if you preferred, you could sell the option, potentially at a profit.

In-the-money options are generally among the most actively traded, especially as the expiration date approaches.

References in periodicals archive ?
The in-the-money option has seen heavy trading all day, but the bulk of today's volume crossed in two blocks of 10,000 contracts around 9:44 a.
At last check, the in-the-money January 80 call has seen more than 13,300 contracts cross the tape on open interest of nearly 83,000 contracts.
In options trading, peak call open interest in the January series rests at the in-the-money 15 strike with more than 248,500 contracts in residence.
For the options player, an in-the-money March 10 call seems fairly priced at the moment, as does a June 10 call.
This will be accomplished by increasing the exercise price of unexercised options to such fair market value and, for exercised options, by such individuals compensating the Company for the amount of such benefit, after reduction for any taxes paid, either through a cash payment or cancelling vested options having an in-the-money value equal to the amount of the payment.
Granted, this duo is currently working its way through the 10 region, but this could give you the opportunity to make a nice, long-term, in-the-money play.
Compared to the stock's one-month historical volatility of only 67%, the in-the-money May 50 call is relatively expensive at the moment, last crossing the tape for $6.
However, the in-the-money 12 strike is still home to peak call open interest in the front-month series, with more than 9,300 contracts in residence.
Most popular was the stock's in-the-money August 10 call, which saw roughly 9,900 contracts change hands.
WSNet has 4,520,977 shares of its common stock outstanding on a fully-diluted basis including in-the-money options and warrants, resulting in an aggregate transaction value of $15,823,420.
However, compared to RIG's three-month historical volatility of 51%, the in-the-money August 80 call is still relatively inexpensive at the moment.