In The Money – ITM trades
In-The-Money is being defined by Investopedia as:
1. For a call option, when the option’s strike price is below the market price of the underlying asset.
2. For a put option, when the strike price is above the market price of the underlying asset.
So, in our case of retail traders, In-The-Money basically mean you are right about the trade direction and you win that trade, therefore you’ll get a certain percentage of your initial investment. Congratulation.