OTM options are more commonly traded for strategies such as covered calls or protective puts. ITM options have their uses.

In the case of a long call vertical spread, a partially ITM spread will convert to 100 long shares, and the OTM short call option would not get assigned to offset the long shares [by selling the ...

A call option ... in the money (ITM) by $0.01 or more at expiration. A short call sold at a strike below the shares’ cost basis could result in locked-in losses if the shares get called away early by ...