The contract is past its strike, so it carries real value right now.
What does "in the money" mean
A call is in the money (In The Money · ITM) when the stock price is above the strike price, and a put when it is below. The contract here carries real immediate value: the difference between the two prices, plus whatever time value remains.
How it behaves
The deeper a contract goes in the money, the closer its delta moves to 1 (or −1 for a put), so it moves almost like the stock, and time value shrinks as a share of the price, so theta weighs less in relative terms. It is the closest in behavior to owning the stock with less capital, though the expiration date remains a sword overhead.
Price versus probability
An in-the-money contract costs more because you pay its immediate value in full, but its high sensitivity makes it less dependent on a big burst of movement: the stock only has to keep going. That is why many use it as a stock substitute in directional strategies.
Hypothetical example
A stock at $120 and a call with a $100 strike priced at $21.50: its immediate value is $20 and its time value only $1.50, with a delta near 0.90. A $1 rise in the stock lifts it to about $0.90.
Common mistake
Forgetting that "in the money" is a momentary state, not a permanent one. A sharp drop takes the contract out of the money, its delta collapses, and time value takes over its price again. The label changes with every move.
What changes when a contract goes in the money
Three things at once: intrinsic value appears, so the contract gets a solid floor. The delta rises above one half, so behavior approaches the stock's. And the chance of assignment at expiration becomes the default, not the exception. That is why an in-the-money position near expiration is managed with an explicit decision: close it, roll it, or accept delivery.
Where to see it on the platform
The options chain visually marks in-the-money rows, and the options calculator shows the status of any contract (in/out of the money) and its distance from the strike in percent.
The options chain labels every contract by its position, and the calculator separates its intrinsic value from its time value.
