Reviewed by Thomas Brock Fact checked by Vikki Velasquez In the Money vs. Out of the Money: An Overview Traders define ...

This means that the owner of the option could exercise ... Each investor should check with their broker for their specific policies on ITM options that are approaching expiry.

Before delving into the pros and cons of each, let's look at what it means to be in or out of the money. A call is ITM when the underlying stock is trading above the strike price. Conversely it is ...