A call option with a strike price being below the net amount of its underlying’s market price minus the premium, at a given point within its time to maturity (for American options) or at expiration date (for European options). The holder of such a call option will choose to exercise because the position is in the money, i.e., profits can be made upon exercise. The seller or writer of such an option will be in a money-losing position to the same magnitude.

It is known for short as an ITM call.