Business and Personal Finance Dictionary

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• IN THE MONEY
  
  You are in the money when you own a stock option with a strike price that's close enough to the current market price to allow you to exercise the option at a profit. If it's a put option, giving you the right to sell, the current market price must be below the strike price. If it's a call option, giving you the right to buy, the current price must be above the strike price. For example, if you have a call option with a strike price of $50, and the current market price of the stock is $52, you're in the money, since you could buy the stock at $50 and sell it at $52. In-the-money options are generally among the most actively traded, especially as the expiration date approaches.
  
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