In-the-money

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 ?
The aggregate number of shares of Patterson-UTI common stock is subject to downward adjustment if certain in-the-money Seventy Seven Energy warrants are forfeited or exercised on a net-share basis.
With completion of the transaction, existing Tahoe and Lake Shore Gold shareholders will own approximately 74% and 26% of the pro forma company, respectively, on a fully-diluted in-the-money basis.
Eligible borrowers meeting basic HARP requirements (so-called in-the-money borrowers) must have a remaining balance of $50,000 or more, a remaining term greater than 10 years and an interest rate at least 1.
Because of accounting treatment differences between in-the-money and at-the-money option grants, backdating resulted in materially understated employee compensation expenses and overstated operating income and company performance.
In-the-money percentage: Tiznow, 100 percent to 86 percent.
The option exercise price is $50 per share so Harold's options are $150 per share in-the-money.
Therefore, the LSOs go in-the-money only when the stock price exceeds a deemed cost of capital return for the five-year option period.
Since options on coffee futures are listed at 5 cent intervals, and September futures settled at 97 cents on April 18, the roaster would have to choose between writing the 95 cent option that is slightly in-the-money (strike price below the current market price) or the 100 cent option that is slightly out-of-the-money (strike price is slightly above the current market price).
s stock in which either it or a hostile suitor winds up the survivor), at which point they become deeply in-the-money.
The pre-crash level of protection provided by margins on at-the-money and in-the-money options was adequate and consistent with the level of protection provided by margins in the cash market.
While the trader received a hefty premium for selling these deep in-the-money calls, the main objective for this particular trade was likely to capture dividend.