In The Money
1. For a call option, when the option's strike price is below the market price of the underlying asset.
2. For a put option, when the strike price is above the market price of the underlying asset.
Being in the money does not mean you will profit, it just means the option is worth exercising. This is because the option costs money to buy.
In the money means that your stock option is worth money and you can turn around and sell or exercise it. For example, if John buys a call option on ABC stock with a strike price of $12, and the price of the stock is sitting at $15, the option is considered to be in the money. This is because the option gives John the right to buy the stock for $12 but he could immediately sell the stock for $15, a gain of $3. If John paid $3.50 for the call, then he wouldn't actually profit from the total trade, but it is still considered in the money.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Money Goes, Honey Stay (When the Money Goes Remix) — Single by Fabolous featuring Jay Z from the album Loso s Way Released July 28, 2009 Format Digital Download … Wikipedia
The Money Maze — Format Game show Created by Don Lipp Ron Greenberg Directed by Arthur Forrest Presented by Nick Clooney Narr … Wikipedia
The Money Game II: Kabutochou no Kiseki — cover art Developer(s) SOFEL … Wikipedia
The Money Programme — The logo as of 2008 Genre Finance Business Affairs Presented by Max Flint Libby Potter Opening theme … Wikipedia
The Money Well — is a Scrooge McDuck comic strip story written by Carl Barks. Storyline Scrooge and his nephews are at his Money Bin where they find out that The Beagle Boys are using oil rigs to steal Scrooge s Money. Scrooge and his nephews use the secret… … Wikipedia
The Money Dragon — is a historical fiction novel written by Pam Chun in 2002. It tells the story of a Chinese immigrant, Lau Ah Leong, through the eyes of his daughter in law.Book Structure The Money Dragon opens with a foreword by former U.S. Senator Hiram Fong.… … Wikipedia
The Money-Maker Recipe — 師奶股神 The Money Maker Recipe poster Genre Modern Drama Starring Kiki Sheung Michael Tse … Wikipedia
The Money-Order with White Genesis — The money order : with, White genesis ( fr. Le mandat, précédé de Vehi Ciosane ) is a book containing two novellas by Senegalese author Ousmane Sembene, first published in French in 1966. An English language translation was published in 1987. It… … Wikipedia
The Man, the Woman and the Money — (Oggi, domani, dopodomani) original dvd cover Directed by Eduardo De Filippo Marco Ferreri Luciano Salce … Wikipedia
The Money Machine — was a show on ZDTV, and later TechTV, hosted by Carmine Gallo. The show offered investment advice to viewers, predominantly on how to begin investing via the internet. When TechLive debuted in 2001, The Money Machine was discontinued in favor of… … Wikipedia
The Money Lenders — 1981 is a book by British journalist Anthony Sampson that looks at the history of banking from the Renaissance to a meeting of the International Monetary Fund in Washington DC in 1980, with an emphasis on the interaction of finance with… … Wikipedia