In-The-Money/Out-Of-The-Money
| In-the-money options are those that would lead to a profit if they were exercised immediately. Out-of-the-money options are those that would result in a loss if they were exercised immediately. In-the-money options are those that have a strike price below the current price of the underlying asset for call options, or above the current price of the underlying asset for put options. Out-of-the-money options have a strike price above the current price of the underlying asset for call options, or below the current price of the underlying asset for put options. In-the-money options are more expensive than out-of-the-money options because they have a higher chance of expiring in-the-money. The further in-the-money an option is, the more expensive it is. Out-of-the-money options are less expensive because they have a lower chance of expiring in-the-money. Options trading mechanisms that allow investors to bet on the future price of an asset or cryptocurrency and take profit if they are correct. |
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