This status — called “moneyness” — can change over time as the price of the stock moves above and below the option’s strike ...

An options contract is in the money if it has intrinsic value because its strike price is higher than its spot price (in the case of a put) or lower than its spot price (in the case of a call).

In its most basic form, it’s a good instrument to use if you believe that a stock’s price will rise. This is because options are leveraged. For a relatively small amount of money, you can earn ...

Intrinsic value is the difference between the underlying stock’s current market price and the option’s strike price. Only in-the-money options carry intrinsic value. A call option is in the ...

you can buy three options contracts expiring in a month, meaning you're making a deal on 300 shares. The stock price then rises by 10%, and your contracts expire in the money, leaving you with ...