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Easy Way to Understand In the Money (ITM) Option

In the money (ITM) option

We will like you to understand the terminology associated with the in the money option and we can say that this option would give holder a positive cash flow, if it were exercised immediately.

A call option is said to be ITM, when spot price is higher than strike price.

And, a put option is said to be ITM when spot price is lower than strike price.

Do remember to check our F&O tips and make money like professionals.

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