'In the Money' (ITM) is a term commonly used in financial markets to describe stock options or derivative contracts that currently have value. For a call option, being ITM means that the current price of the underlying asset is above the strike price of the option, making it profitable for the holder to exercise it. Similarly, for a put option, it would mean that the underlying's market price is below the option's strike price. For example, if someone holds a call option with a strike price of $50 and the stock is currently trading at $55, the option is considered 'in the money'. Contrarily, a put option with a strike price of $60, when the stock price is $55, is also ITM. Understanding whether an option is ITM, at the money, or out of the money is crucial for options trading and valuation. ITM options are significant in portfolio management, derivative trading, and financial risk assessment.