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itm
What does itm mean?
'In the money': an option whose strike is favorable versus the current price, giving it real intrinsic value. Safer and pricier than OTM lottery tickets.
"I went ITM this time instead of gambling on cheap calls."
Origin
Standard options terminology, the counterpart to OTM, common in WSB options talk.
Frequently asked questions
What does ITM mean?
'In the money' — an option whose strike price is favorable versus the current stock price, so it already has real intrinsic value.
Is ITM safer than OTM?
Generally yes. ITM options cost more but have intrinsic value, whereas cheap OTM options can expire worthless if the stock doesn't move enough.
What's the difference between ITM and OTM?
ITM options already have intrinsic value because the strike is favorable; OTM options are unfavorable and hold only time value.
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