in the money

Definition

Situation in which an option's strike price is below the current market price of the underlier (for a call option) or above the current market price of the underlier (for a put option). Such an option has intrinsic value.

Use in the money in a sentence

The stock had done so well lately that his option with the company was now in the money and he was looking to sell.

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I was in the money when the options contracts moved down over 3% earlier today and as a result of the move I cashed out.

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It was below the current market price and I realized that the phrase for that was called in the money and I felt smart afterwards.

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