In-the-money option

In-the-money option

An option that has intrinsic value. For a call option, the underlying asset price exceeds the exercise price of the option (hence, if the option is immediately exercised, it has value).

In-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.
References in periodicals archive ?
31) Conceptually, an in-the-money option might still be considered performance-based because its value depends on maintaining the stock price above a certain number.
If a stock transaction would have created a constructive sale, the in-the-money option will also create a constructive sale.
The extra $5 million received then goes to the investment banker to settle the in-the-money option that the corporation had previously been short.
50 yesterday, it appears that most of the activity surrounding the in-the-money option consisted of widespread profit-taking.
Open interest for this in-the-money option comes in at 20,312 contracts, making it the site of peak front-month call open interest.
A market participant holding an in-the-money option will receive a position in the December futures contract.
In addition, each outstanding in-the-money option to purchase shares of Castelle was converted into the right to receive the excess, if any, of the per share purchase price ($4.
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.
This factor suggests that these could be new positions, but there are already 5,743 open contacts on this newly in-the-money option, so they could be liquidations as these speculators seek to collect profits.
At the time we pulled our numbers, this in-the-money option had seen more than 22,000 contracts trade on an option that, heretofore, had open interest of fewer than 3,700 contracts.
Open interest at this in-the-money option rose from 29,631 to 43,992 contracts, as blocks of 2,978 and 7,430 contracts crossed the tape at 1.