In the Money Term category: Derivatives In 10 words or less: When the price of the underlying security is beyond the strike price of the option.
Definition: Options are said to be "in the money" when they have exercisable value. This occurs when the current price of a stock is above its strike price (call option) or below the strike price (put option).
StockJargon Advice: Options can still have value if they're out of the money but they can't be exercised until they are in the money. Ideally, if you buy a call option, you want the stock to rise and eventually become "in the money."
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