An In-the-money (ITM) option is an option that would lead to a positive cash flow to the holder if options were exercised immediately. A call option index is said to be In-the-money when the current index stands at a level higher than the strike price (i.e. spot price > strike price). If the index is much higher than the strike price, the call is said to be deep ITM. In the case of a put, a put option index is said to be In-the-money if the index is below the strike price.