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 ?
Odd blocks in Alcoa open bullish in-the-money put position.
This transaction value (excluding Semafo's existing 15.4% equity interest) was approximately CAD22.7m on a fully diluted in-the-money basis, representing 2.2% dilution to Semafo's shareholders.
Liberty option holders will also receive cash equal to the difference between USD42.00 per share and the exercise price of their in-the-money options.
All holders of outstanding stock options of Espial will be entitled to receive the "in-the-money" value of such stock options, less applicable withholdings.
In addition, all holders of outstanding stock options of Symbility will be entitled to receive the "in-the-money" value of such stock options, less applicable withholdings.
As part of the transaction, it is expected that all US Cobalt stock options outstanding will be replaced with First Cobalt stock options and be exercisable for First Cobalt shares based on the Exchange Ratio for the remainder of their original term, and all US Cobalt warrants outstanding will participate in the transaction on a comparable basis to holders of US Cobalt common shares based on the in-the-money portion of those securities.
As part of the Transaction, it is expected that (a) all US Cobalt stock options outstanding will be replaced with First Cobalt stock options and be exercisable for First Cobalt shares based on the Exchange Ratio for the remainder of their original term, and (b) all US Cobalt warrants outstanding will participate in the Transaction on a comparable basis to holders of US Cobalt common shares based on the in-the-money portion of those securities.
The number of AuRico Shares to be issued as part of the contract is around 8.2 million, assuming conversion of Kiska's in-the-money options and warrants, representing approximately 5.5 percent of the current issued and outstanding AuRico Shares.
Cash flow leverage ratios are expected to continue rising as in-the-money hedges continue to roll off this year.
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 1.5 percent higher than current market rates.
and TEM Holdings, Inc., all the outstanding shares of Veramark common stock and in-the-money options will be bought for USD1.18 per share.
It is more likely for the guarintee to be in-the-money as the lease approuches expiry.)