In-the-money option
In a call option, when the strike price of the contract is less than the prevailing spot market price of the underlying stock/index, it's an in-the-money option. It's the opposite in a put option.
At-the-money options
When an option contract is struck at a strike price which is equal to the prevailing market of the underlying stock/index, it is referred to as an at-the-money option.
Out-of-money options
For call options, when the strike price of the contract is higher than the prevailing spot market price, it is a case of an out-of-money option. For put options, the opposite is true.
Click Here to Get Free Stock Market Technical Analysis Tips and Charts in Email