Trading Class

Glossary › in the money

Trading glossary · advanced

in the money

A buy-or-sell ticket that would already be worth something if you used it now.

The fuller meaning

An option with intrinsic value: a call whose strike is below the underlying's price, or a put whose strike is above it, before counting the premium paid. Deep in-the-money calls have deltas close to 1 and move almost like the stock.

in the money, also called in-the-money.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger