Glossary - Intrinsic Value
The in-the-money portion of an option's price. A call option's intrinsic or in-the-money value is the difference between the stock price and the strike price when the stock price is above the strike price. A put option's intrinsic or in-the-money value is the difference between the stock price and the strike price when the stock price is below the strike price.



Glossary definition courtesy of Glenn R. Pafumi, CFA at OptionTraderOne
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