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 ?
Garth's eyes were now drawn towards her husband, who was already deep in the letter he was reading.
a chunk of ceiling dropped onto a battery charger deep in the mine's tunnels.
The seed needs to go in at 1/2 inch deep in drills 1ft apart.
Probably most interesting are the many kinds of new bacteria discovered that dwell not only in the other creatures, but deep in the hot vents themselves.
Right now he is deep in Mexico in a small village in the state of Michoacan, saying goodbye to his grandmother and cousins.