deep-in-the-money investment & finance definition Used to describe a call (put) option that has a strike price considerably less (more) than the market price of the underlying stock.
Deep-in-the-Money: An option with a lot of intrinsic value. Deleted: A security is no longer included in the major national markets.
Buying DITM (Deep-in-the-Money) options takes full advantage of the DELTA of an option, so that swings in the stock are matched dollar for dollar with the changes in the value of the option.
A deep-in-the-money call option has the strike price of the option well below the current price of the underlying instrument. A deep-in-the-money put option has the strike price of the option well above the current price of the underlying instrument.
See also: In-the-Money, Option, Stock, Trader, Options
 
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