by 
lhtman
ANSWERS: 1
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A Call option is In the Money ["ITM"] when the Strike Price is included in the price of the stock. EXAMPLE: When a stock has an "Ask" of $40.55 AND The Call's Strike Price is $35.00, due to the fact the entire $35 is included and part of "ask", the 40.55 is said to be "In The Money". YET, due to the fact that $40.55 stock did not yet pass the $42.51 price, that stock is considered "At The Money" ["ATM"]. AND, due to the fact the stock's price has not achieved the NEXT strike price of $45, that option at that $45 Strike Price is considered "Out of The Money" ["OTM"]. A Put Option operates EXACTLY THE OPPOSITE from a Call Option. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name! Sources: My wonderful family! My wonderful coaches and mentors! TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of! Trading stocks and options more than 2 years. "THE University of Hard Knocks"
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