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In the money

Also called: ITM

In one line

An option is 'in the money' when the share value is above your strike price, so exercising would show a gain.

In plain English

In-the-money options have real exercise value: the shares are worth more than you'd pay. The bigger the gap, the more built-in value — though you still need a way to sell to realise it.

If you were explaining it to a 5-year-old

Your voucher lets you buy a toy for 1 coin, and it's worth 10. The voucher is 'in the money' — a clear win if you can sell.

Why it matters when you sell

Only in-the-money options are worth exercising to sell, and the size of the gain drives both your proceeds and your tax.

Related terms

Out of the moneyStrike priceSpread (equity)Bargain element

Put it to use

Are my options worth anything?

Hold private-company shares? Our free estimator shows what your stake could be worth and whether you can sell — no sign-up. Value my equity (free) → · Back to the glossary →
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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.