Reviewed by Thomas Brock Fact checked by Vikki Velasquez In the Money vs. Out of the Money: An Overview Traders define ...
Black-Scholes was revolutionary in helping to price options. It quantified how things like time until expiry, moneyness (how far the strike is from the underlying price) and volatility all work ...
Traders define options as "in the money" (ITM) or "out of the money" (OTM) by the strike price's position relative to the market value of the underlying stock, commonly called its moneyness.