In-The-Money

In-the-money is a term from options trading.

A call option (the right to buy a stock at a set price) is in-the-money when the stock price rises enabling the option holder to buy shares for less than their current market price.

A put option (the right to sell a stock at a set price) is in-the-money when the stock price falls enabling the option holder to sell shares for more than their current price.

An in-the-money option has intrinsic value as well as time value. The option has time value until it reaches its expiry date.

Options can also be at-the-money or out-of-the-money.

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