When a call option is said to be in the money (ITM), it means that it has inherent value. An option that is in the money is one that offers a chance to profit since the strike price and the current market price of the underlying asset are in close proximity to one another. A call option that is in the money allows the holder to purchase the securities for less than its current market value. If a put option is in-the-money, it allows the holder to sell the security for a higher price than it is currently trading for. Bear in mind that a trader may not always make money by exercising an option even if it is in the money because of the costs (such commissions) associated with options.
