ES Thursday 10-27-16 : Hot Topic

In The Money (ITM)

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Definition of 'In The Money (ITM)'

In The Moneny (ITM) refers to an option which has intrinsic value. That means that the current trading price for the underlying security is such that if the option were to be exercised now that option would be closed out with a cash value.

For call options this means that the strike price is below the current trading price and for put options this means that the strike price is above the current trading price.

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