What Is In The Money?

In the money is a trading term referring to the value of options. If an option is said to be 'in the money', then it has value. In the money does not mean you have made profit yet, because the profit has not been realized. However, it does mean that selling the option will give you profit.

For options:

  • A call option is in the money when the strike price is below the market price of the asset
  • A put option is in the money when the strike price is above the market price of the asset

Related Terms

Return to Finance Dictionary

Start Discussion

Popular Content See all

Fair warning and a word from the wise: IB is NOT the only path
+46IBby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A
Appropriate Car at Junior Level
+15IBby Vice President in Investment Banking - Industry/Coverage">VP in IB - Ind
Sweatiest banking in SF
+13IBby 1st Year Analyst in Investment Banking - Industry/Coverage">Analyst 1 in IB - Ind
Jamie Dimon for Treasury Secretary?
+12OFFby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A

Total Avg Compensation

November 2020 Investment Banking

  • Director/MD (18) $713
  • Vice President (52) $334
  • Associates (272) $228
  • 3rd+ Year Analyst (39) $161
  • 2nd Year Analyst (152) $153
  • Intern/Summer Associate (139) $139
  • 1st Year Analyst (592) $130
  • Intern/Summer Analyst (565) $82

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.4
2
Jamoldo's picture
Jamoldo
98.3
3
Secyh62's picture
Secyh62
98.2
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.8
6
bolo up's picture
bolo up
97.5
7
Addinator's picture
Addinator
97.5
8
NuckFuts's picture
NuckFuts
97.5
9
Edifice's picture
Edifice
97.5
10
frgna's picture
frgna
97.5