Glossary term
ITM (In-The-Money)
An option that holds intrinsic value: a call with the stock above the strike, or a put with the stock below the strike.
ITM (In-The-Money) describes an option that holds intrinsic value — a call when the stock is above the strike, or a put when the stock is below it. An ITM option's price has two components: intrinsic value plus remaining time value. ITM options carry higher assignment risk and behave more like the underlying stock as delta approaches 1. See Options 101.