Options Glossary

Glossary: In the Money

Last Updated: July 12, 2015

Glossary

In the Money

What Does In the Money Mean in Options Trading?

When the underyling asset upon which the option has a higher price (in the case of a call) or a lower price (in the case of a put) than the strike price of the option.

Same Terms Found in OptionAutomator’s Content:
  • Moneyness
    Moneyness returns one of three labels that can be used for filters: 0) OTM 1) ATM 2) ITM
  • Probability ITM
    Probability of being In The Money (ITM) at expiration
  • Percent ITM
    Percent the contract or spread is already In The Money (ITM)
  • Slope Percentile (1y)
    The current slope compared to the high-low range from the past year. Slope is the best-fit straight line through the strike volatilities tangent to the 50-delta. It gives us an indication of the price of out of the money options vs. in-the-money. A high relative slope is ideal when selling OTM options and should be avoided when buying OTM and selling ITM.
  • ITM
    Determines if any of the spread or trade is ITM (in-the-money). Returns 1/0 for true/false and can only be used as a filter, not as a criterion.
  • Private Glossary Working Area

Related Options Trading Terms

When the underyling asset upon which the option has a higher price (in the case of a call) or a lower price (in the case of a put) than the strike price of the option.

Same Terms Found in OptionAutomator’s Content:
  • Moneyness
    Moneyness returns one of three labels that can be used for filters: 0) OTM 1) ATM 2) ITM
  • Probability ITM
    Probability of being In The Money (ITM) at expiration
  • Percent ITM
    Percent the contract or spread is already In The Money (ITM)
  • Slope Percentile (1y)
    The current slope compared to the high-low range from the past year. Slope is the best-fit straight line through the strike volatilities tangent to the 50-delta. It gives us an indication of the price of out of the money options vs. in-the-money. A high relative slope is ideal when selling OTM options and should be avoided when buying OTM and selling ITM.
  • ITM
    Determines if any of the spread or trade is ITM (in-the-money). Returns 1/0 for true/false and can only be used as a filter, not as a criterion.
  • Private Glossary Working Area
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