In the Money

An option whose strike price is below the current price of the underlying stock or future (for call options) or above the current price of the underlying stock or future (for put options).  With Cisco trading at $70, both the $60 call options and $80 put options are in the money.  It is one of three terms used to describe option “moneyness”, which is the relationship between the position of the current or future price of an underlying asset and the strike price.