Tag: out-of-the-money

Introduction:Understanding the concepts of in-the-money (ITM) and out-of-the-money (OTM) strike prices is essential for options traders. These terms refer to the relationship between the strike price and the current market price of the underlying asset. In this article, we will break down the differences between ITM and OTM strike prices, providing valuable insights to help you make informed decisions in options trading. In-the-Money (ITM) Strike Prices:An ITM strike price is one that is favorable for the option holder. For call options, an ITM strike price is below the current market...