Easy Way to Understand In the Money (ITM) Option

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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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