Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
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When the price of an Option has gone beyond its strike price, it is called in the ITM.
Zerodha (Flat Rs 20 Per Trade)
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A call option is in-the-money if the 'strike price is less than the current market price' of the underlying asset.
A put option is in-the-money if the 'strike price is greater than the current market price' of the underlying asset.
Examples:
Call Options
| Option with Strike Price = Rs 115 | OTM Call Options |
| Option with Strike Price = Rs 110 | OTM Call Options |
| Current Market Price = Rs 109 | ATM Call Options |
| Option with Strike Price = Rs 105 | ITM Call Options |
| Option with Strike Price = Rs 100 | ITM Call Options |
In above table, if the current market price moves to Rs 111, the option with strike price Rs 110 will become in-the-money call option.
Put Options
| Option with Strike Price = Rs 115 | ITM Call Options |
| Option with Strike Price = Rs 110 | ITM Call Options |
| Current Market Price = Rs 109 | ATM Call Options |
| Option with Strike Price = Rs 105 | OTM Call Options |
| Option with Strike Price = Rs 100 | OTM Call Options |
Note:
In the below screenshot (source: NSE website) check the box no. 8 and 9. The ITM is marketed with yellow background.
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