You're here:  Home --> Dictionary --> I --> In the Money

A Few Related Terms

At the Money
Out of the Money
Option
Strike Price

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."

Related Articles


Options and Put-Call Parity
This article will help to explain what options are and how people use them for hedging/speculating...

Commodity Trading
Commodity trading can be quite risky but it is an alternative to stocks and bonds…

Foreign Exchange Markets
Investing in the foreign exchange market has its own benefits and disadvantages, as this article discusses…

Related Books

Stock Options for Dummies by Alan R. Simon
Professional Stock Trading by Mark Conway
My Life as a Quant by Emanuel Derman
Buying Bonds on Margin By Business Publication Corp.

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z