Options

In-the-Money (ITM)

Definition

An option with intrinsic value. A call is ITM when the underlying price is above the strike; a put is ITM when below the strike.

Example
SPX at 6300 makes a 6200 call ITM. At-the-Money (ATM) Category: Options Definition: An option whose strike price is equal (or very close) to the current price of the underlying asset. Highest time value.
Frequently Asked Question
What is In-the-Money (ITM) in trading?
An option with intrinsic value. A call is ITM when the underlying price is above the strike; a put is ITM when below the strike.
APA Citation
Clark, R. (2025). In-the-Money (ITM). VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/in-the-money-itm
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.