What is the meaning of In the money?

You are' In the money' when you own a stock option with a strike price that's close enough to the current market price to allow you to exercise the option at a profit. If it's a put option, giving you the right to sell, the current market price must be below the strike price. If it's a call option, giving you the right to buy, the current price must be above the strike price. 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 actively traded, especially as the expiration date approaches.

4
 
|15 years ago|603 views|share |citing 
APABarry Goldsmith. (2010). in the money. Retrieved September 23, 2026, from http://smartdefine.org/in_the_money/definitions/1155812
ChicagoBarry Goldsmith. 2010. "in the money" http://smartdefine.org/in_the_money/definitions/1155812 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, in the money, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/in_the_money/definitions/1155812>.
MLABarry Goldsmith. "in the money" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/in_the_money/definitions/1155812>