An option is in the money when the stock price and strike price align, Peter Tuchman notes

An option is in the money when the stock price and strike price align, Peter Tuchman notes
Options in the money definition explained

Peter Tuchman explained that an option is considered in the money based on the relationship between the stock price and the option’s strike price. According to Tuchman, a call option is in the money when the stock trades above its strike price, while a put option is in the money under the opposite condition.

Peter Tuchman has previously commented on notable market shifts. He reported that the S&P 500 lost more than $1 trillion in market cap after falling 1.60% in a single session (link). In another update, Tuchman noted the S&P 500 trading near its daily low despite recording a modest 0.25% gain (link).

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.