Terms Beginning With 'i'

In the Money (ITM)

  • January 22, 2020
  • Team Kalkine

In case of call options, In the money is when the strike price of an asset is less than the spot price while in case of put options, in the money is when the strike price of the asset is more than the spot price.

An In the Money call option gives an option holder the right to purchase the underlying asset at a price that is below its present market price.

An in the money put option, gives the option holder with the right to sell the underlying asset at a price above its current market price.

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