In-the-money

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In-the-money

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.

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.

in-the-money

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.

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 ?
50and includes the cash out of CBBC in-the-money options.
The consideration of 50 pence for every Probability stock values all of the issued and to be issued stock capital of Probability (assuming that all rights regarding in-the-money options under the Probability Stock Option Schemes are exercised) at nearly 18.
This includes the cancellation of in-the-money options with cash.
all the outstanding shares of Veramark common stock and in-the-money options will be bought for USD1.
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Options Sniper's proprietary system focuses on quicker in and out front month, in-the-money options with consistent performance.
Holders of Verenex in-the-money options and performance warrants who have properly elected in a manner acceptable to Verenex will surrender such options and performance warrants under the arrangement in exchange for a cash payment equal to the in-the-money amounts thereof determined with reference to the per share Cash Purchase Consideration being paid for the Verenex Shares.
00 per company common share and all of company outstanding in-the-money options and warrants.
Had the companies in question appropriately acknowledged the grants of in-the-money options and recorded the noncash expense, there would be no scandal.
24) The relevant regulations clarify that in-the-money options do not qualify as performance-based compensation.