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Deep in the Money
Deep in the money is an option that has an exercise or strike price significantly below (for a call option) or above (for a put option) the market price of the underlying asset. The value of such an option is nearly all intrinsic value and minimal extrinsic or time value. Deep in the money options have deltas at or close to 1.00 (or 100%), which means the price of the option is expected to increase or decrease nearly in unison with the change in market price of the underlying security.
Deep in the money options can be contrasted with those deep out of the money, which instead have no intrinsic value and also minimal extrinsic value. These options have deltas close to zero.
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