In-the-Money (ITM)

In-the-money (ITM) means the the strike price of a call is below the market price of the underlying security, or that the strike price of a put is above the market price of the underlying security. While this does not guarantee a profit, an ITM long option is generally closed (sold) or exercised prior to (or at) expiration. ITM short options will generally be assigned prior to (or at) expiration.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.