In the Money Option (Calls)

Refers to an option where the futures price has exceeded the strike price on which it is based. An option to buy December heating oil at 60cts/gal is “in the money” when December heating oil futures move above 60cts/gal. A put option for 60cts/gal would be “in the money” if the futures price is under the 60cts/gal strike price.