In the money

Options are in the money (ITM) when their strike price offers economic benefits to holders i.e. they have intrinsic value. For call options, this means the spot price is above the options strike price; for put options, it means the spot price is below the strike price. In both cases, a holder could exercise their options and make a profit (although profit will also depend on fees and commissions payable as well as the options premium (price) paid. For calls, the higher the spot price relative to the strike price the bigger the potential profit for traders who exercise.