What does 'Deep In The Money' mean
Deep in the money is an option with an exercise price, or strike price, significantly below (for a call option) or above (for a put option) the market price of the underlying asset. Significantly, below/above is considered one strike price below/above the market price of the underlying asset. For example, if the current price of the underlying stock was $10, a call option with a strike price of $5 would be considered deep in the money.
BREAKING DOWN 'Deep In The Money'
The most important characteristic of this type of option is its considerable intrinsic value, which is calculated by subtracting the strike price from the underlying asset's market price for a call option (and vice versa for a put option). As an option moves deeper into the money, the delta approaches 100% (for call options), which means for every point change in the underlying asset's price, there will be an equal and simultaneous change in the price of the option, in the same direction. Thus, investing in the option is similar to investing in the underlying asset, except the option holder will have the benefits of lower capital outlay, limited risk, leverage and greater profit potential.

Deep Out Of The Money
An option with a strike price that is significantly above (for ... 
In The Money
1. For a call option, when the option's strike price is below ... 
At The Money
A situation where an option's strike price is identical to the ... 
Out Of The Money  OTM
A call option with a strike price that is higher than the market ... 
Bear Call Spread
A type of options strategy used when a decline in the price of ... 
Strike Price
The price at which a specific derivative contract can be exercised. ...

Trading
What's the Strike Price?
The strike price is the price at which a derivative can be exercised, and refers to the price of the derivativeâs underlying asset. In a call option, the strike price is the price at which the ... 
Trading
What Is Option Moneyness?
Get the basics under your cap before you get into the game. 
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Getting Acquainted With Options Trading
Learn more about stock options, including some basic terminology and the source of profits. 
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Options Hazards That Can Bruise Your Portfolio
Learn the top three risks and how they can affect you on either side of an options trade. 
Trading
A Guide Of Option Trading Strategies For Beginners
Options offer alternative strategies for investors to profit from trading underlying securities, provided the beginner understands the pros and cons. 
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Three Ways to Profit Using Put Options
A brief overview of how to profit from using put options in your portfolio. 
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Exploring The World Of Exotic Options
Exotic options provide investors with new alternatives to manage their portfolio risks and speculate on various market opportunities. The pricing for such instruments is considerably complex, ... 
Trading
How To Manage A Bull Call Spread
A bull call spread, also called a vertical spread, involves buying a call option at a specific strike price and simultaneously selling another call option at a higher strike price. 
Trading
What Does It Mean When an Option is At The Money?
The strike price of an atthemoney options contract is equal to its current market price. Options that are at the money have no intrinsic value, but may have time value.

How do I change my strike price once the trade has been placed already?
Learn how the strike prices for call and put options work, and understand how different types of options can be exercised ... Read Answer >> 
What is the difference between in the money and out of the money?
Learn about how the difference between in the money and out of the money options is determined by the relationship between ... Read Answer >> 
How does the term 'in the money' describe the moneyness of an option?
Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >> 
When is a call option considered to be "in the money"?
Learn about call options, their intrinsic values and why a call option is in the money when the underlying stock price is ... Read Answer >> 
How are call options priced?
Learn how aspects of an underlying security such as stock price and potential for fluctuations in that price, affect the ... Read Answer >> 
Where did the terms inthemoney and outofthemoney come from?
Learn what the terms "in the money" and "out of the money" mean, where the terms come from, and how investors use the terms ... Read Answer >>