Posted 7/10/2012 14:30 (#2477622 - in reply to #2477594) Subject: Re: Can someone explain 'in the money' and 'out of the money' options
SW Wisconsin
It is referring to the strike price.
If you bought a $7 (strike price) call and the contract month is trading above $7; you are "In the money"
If you bought a $7 (strike price) put and the contract month is trading below $7; you are "In the money"
Once you are in the money, you can expect the premium to start increasing to your gain.
Can someone explain 'in the money' and 'out of the money' options
