Finance glossary
In the Money
Definition
An option that has intrinsic value if exercised now.
An option is in the money when exercising it would be profitable ignoring premium: a call whose strike is below the market price, or a put whose strike is above it. In-the-money options carry intrinsic value and behave more like the underlying asset than out-of-the-money ones.
In a sentence
With the stock at $120 and a $100 call, the option was deep in the money.
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