In the money

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In the money refers to options which have intrinsic value of the security built into them. Call options are in the money when the strike price is lower than the price of the underlying stock, allowing one to buy the stock at a price lower than the market price. Put options are in the money when the strike price is higher than the price of the underlying stock, allowing one to sell the stock at a price higher than the market price.

The opposite of in the money is out of the money

For example: Apple shares trade at $100. In the money options will have strike price of less than $100, allowing the holder to buy the shares at a lower price than the spot price .

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