OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Probability In-The-Money'

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What is Probability In-The-Money in Options Trading ?

Probability In-The-Money
Probability ITM (“In the Money”) is the chance that the underlying asset’s price will end up either above a call’s strike price or below a put’s strike price at the optionsexpiration.

How to Use in Your Brutus Options Ranker Strategy

The Probability ITM is a profitability indicator that looks at the probability of your options setup will expire in the money.

If you are using a net-long options setup, then you will want to maximize this criterion.

If you are using a net-short options setup, then you will want to minimize this criterion.  Alternatively, you can use Probability OTM and maximize that criterion instead.

Broader Term

  • Expiration

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