IN-THE-MONEY OPTION - an expression used for any option series with intrinsic value, i.e., the option's...
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In-The-Money Option
A call option is in-the-money if the strike price is less than the market price of the underlying security. A put option is in-the-money if the strike price is greater than the market price of the underlying security.
In-the-money Options An option that would be worth exercising if it expired immediately. Also see out-of-the-money options.
Investment Banks are firms that assist companies in initial sale of securities in primary market.
In-the-Money Option
A call option whose exercise price is below, or a put option whose exercise price is above, the current price of the asset on which the option is written.
In-the-money options are generally among the most actively traded, especially as the expiration date approaches.
Incentive stock option (ISO) ...
In-the-money option An option that has value. In & out Refers to over-the-counter trading. Trade in which the trader has both the buyers and sellers lined up for a clean trade.
Automatic exercise A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder.
Deep in-the-money option is the option, which the difference of its strike price to the current stock price is very big. If the stock price at the expiry of the options is $9.
That means an in-the-money option has value.For example, if you hold an equity call option with a strike price of $50, and the current market price of the stock is $52, the option is in-the-money.
Guts - Is the purchase or the sale of two in-the-money options. For example, a long guts consists of the purchase of a low strike call and the purchase of a high strike put.
The amount of an option premium that exceeds the intrinsic value of an in-the-money option. A call option with a strike price of 30, for example, has a premium of 3.
Market leptokurtosis would make way out-of-the-money or way in-the-money options more expensive than would be assumed by the Black-Scholes formulation.
The value of an in-the-money option if it was exercised today (before the expiration date). For a call option, this is the difference between the current asset price and the stike price.
The premium for buying a deep-in-the-money option is high, since the holder has the right to purchase the stock at a striking price considerably below the current price of the stock.
The amount of advantage over a current market transaction provided by an in-the-money option.
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Personal Finance Glossary ...
Exercise value
The amount of advantage over a current market transaction provided by an in-the-money option.
Exercising the option
The act of buying or selling the underlying asset via the option contract.
For example, if you have a call option with a strike price of $50, and the current market price of the stock is $52, you're in the money, since you could buy the stock at $50 and sell it at $52. In-the-money options are generally among the most ...
Often used in risk arbitrage. Company that has become the target of a takeover, and whose stock has now become a speculative issue.
In-the-money option
An option that has value.
In & out ...
the longer the time to exercise - the higher the chance of this occurring, and thus the higher the option price; for an in-the-money option the chance of being in the money decreases; ...
The time value of the option divided by the strike price, then annualized. You can use annualized time value to develop an intuitive understanding of how much value the option market is adding to an in-the-money option beyond the intrinsic value.
However, it is usual for employees to be able to exercise options within a period, often 90 days, after leaving the company. The forfeiture provision normally means that employees are forced into an early exercise of in-the-money options. Third ...
To illustrate, if the option's underlying stock increased by 2 points and the call option increased by 1 point, the call option would have a delta of .5. As an in-the-money option near expiration, it advances to a delta of 1.
The company reports that these options had a value of $27 million. The chairman now has in-the-money options worth a staggering $170 million. And this does not count the "time value" remaining in his options.
A put option is in-the-money if the market price of the stock is lower than the strike price of the put. An in-the-money option contract is more likely to be exercised than one that is either at-the-money or out-of-the-money.
 See also: Banks, Expense, Exercise price, Efficient market, Asset pricing model
  
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