An options contract is in the money if it has intrinsic value because its strike price is higher than its spot price (in the case of a put) or lower than its spot price (in the case of a call).

An option can be either in the money, out of the money or (very rarely) at the money. These three different statuses for options indicate the relationship of the option’s strike price and the ...

Traders define options as "in the money" (ITM) or "out of the money" (OTM) by the strike price's position relative to the market value of the underlying stock, commonly called its moneyness.

An options contract is "out of the money" (OTM) when it lacks intrinsic value. When this is the case, there is no point in exercising the contract. Options contracts grant their owners the right ...