ITM
Business & Finance abbreviation · Stock Market & Investing
| Stands for | In the money |
|---|---|
| Categories | Business & Finance |
ITM stands for In the money, a stock market & investing abbreviation.
Describes an option that has intrinsic value: a call whose strike price is below the current price of the underlying asset, or a put whose strike is above it. ITM options cost more but have a higher chance of finishing profitable.
Example: The $90 calls are deep ITM with the stock at $120, so they behave almost like owning shares.
Usage notes
At expiration, US exchange-listed equity options that are at least $0.01 in the money are generally exercised automatically unless the holder instructs otherwise. Deep ITM options have a delta close to 1. The opposite condition is OTM (out of the money).
Related abbreviations
More stock market & investing abbreviations
- HKEX – Hong Kong Exchanges and Clearing
- ICE – Intercontinental Exchange
- IOC – Immediate or cancel
- IPO – Initial public offering
- IR – Investor relations
- ISIN – International Securities Identification Number
- IV – Implied volatility
- KOSPI – Korea Composite Stock Price Index
- LEAPS – Long-Term Equity AnticiPation Securities
- LSE – London Stock Exchange
- MA – Moving average
- MACD – Moving average convergence divergence