In the money (ITM)
An option with positive intrinsic value: a call whose strike is below the current stock price, or a put whose strike is above it. ITM options behave more like the stock itself and carry higher premiums.
Moneyness is about the relationship between strike and spot, not about profit — an ITM option can still be a losing trade if you paid more than it is now worth.
Deep ITM options have deltas near 1.0 (calls) or −1.0 (puts) and little extrinsic value, which makes them stock substitutes with built-in leverage rather than volatility trades.
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