In-the-Money / Out-of-the-Money
What is In-the-Money / Out-of-the-Money?
When the security’s price is higher than the strike price, calls are in the money; when it is lower, they are out of the money. When the security’s price is below the strike price, put options are in the money; when the security’s price is higher than the strike price, they are out of the money.
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