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ITM

ITM, or In the money, is an expression that refers to an option that possesses intrinsic value. 

 

A call option is ITM if the strike price is below the price of the equity in question. 

Example: With AAPL trading at $182.50 a 180C would be $2.50 ‘in the money.’

 

A put option is ITM if the strike price is above the price of the equity in question. 

Example: With AAPL trading at $182.50 a 185P would be $2.50 ‘in the money.’

 

An option can also be out of the money (OTM) or at the money (ATM).