When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option. While the goal for "vanilla" buyers is ...
What Does ‘In the Money’ Mean? The phrase “in the money” (ITM) is used to refer to a stock option that has intrinsic value. This means that exercising the stock option makes better financial sense ...