In-The-Money Options Definition

An option contract is In-The-Money when the price of the underlying asset is above the strike price (for calls) or below the strike price (for puts).

Options that reach their expiration date Out-Of-The-Money will expire worthless at the Expiration Date, while options that are In-The-Money can be traded up to that the end of that day, and or be exercised; where the option holder will purchase (calls) or sell (puts) the shares for the prices dictated in the option contract.