in-the-money

An option that has value. Call options, which give the holder the right to buy a security, are in-the-money when the price of the underlying security is above the option’s strike price, or price at which the security can be bought. The option allows the holder to buy the security at a cheaper price than is available in the market. Put options, which give the holder the right to sell a security, are in-the-money when the security currently is priced lower in the market. The put option allows the holder to get more money from the sale.