What does "In The Money" mean? "In the money" (ITM) is an expression that refers to an option that possesses intrinsic value. ITM thus indicates that an option has value in a strike price that is favorable in comparison to the prevailing market price of the underlying asset: An in-the-money call option means the option holder has the opportunity to buy the security below its current market price. An in-the-money put option means the option holder can sell the security above its current market price. An option that is ITM does not necessarily mean the trader is making a profit on the trade. The expense of buying the option and any commission fees must also be considered. In-the-money options may be contrasted with out of the money (OTM) options. Related articles What is Intrinsic/Time Value Graphic? What is Intrinsic Value? What is Pivot? What is At The Money Options? What is a Condor?