In The Money
In The Money (ITM) describes an option that has intrinsic value, meaning it would have positive value if exercised today. For call options, ITM occurs when the underlying price is above the strike price; for put options, when the underlying price is below the strike price.
Example: If a call option has a strike price of $50 and the underlying stock trades at $60, the option is In The Money and has positive intrinsic value.
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