DerivativesAt-the-money Covered Call Option Writing Clearing Margin Intermarket Spread Forward Contract Customer Margin
In-the-money
An option is considered In-the-money when the buyer is in a profitable position at a specific spot price of the underlying securities. This term is used in reference to both call and put options, with slightly different criteria for each. In the case of a call option, it is deemed In-the-money when the spot price exceeds the strike price. Conversely, for a put option, it is In-the-money when the spot price falls below the strike price. This concept is important to understand when delving into the world of finance and options trading.
Related terms
Understand the meaning and definition of At-the-money in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Covered Call Option Writing in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Clearing Margin in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Intermarket Spread in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Forward Contract in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Customer Margin in the context of stock market, trading, and investments.
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