An option is in the money as a call option if the price of the underlying asset on the spot market is above the strike price. In the case of a put option, this is the case if the price of the underlying asset is below the strike price (a call option is in the money if the price of the underlying asset is above the strike price. A put option is in the money if the price of the underlying asset is below the strike price. – At this price level, the holder of a call option (put option) can purchase (deliver) the underlying asset from the writer of the option at the strike price and sell (buy) it again at the current price on the spot market. He thus makes a profit. – If an option is “deep in the money”, the price of the underlying asset is very far below or above the strike price (the strike price is far below the current price of the asset to which the option is referenced; its chances of being exercised by the holder of the option are therefore very high). – The first, second, or third place in a contest, especially a horse race. – See Out of the money.
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