in the money and out of the money

[cashclay]

How much does it have to be to be deep in or out of the money? 10 cents?

 

[cbc1]

Usually 3-5 strikes. I'd say 5. Depends what ur trading

 

[cvds16]

it's just at term not important whatsoever ... look at the delta, that will give you a better idea ...

 

[cashclay]

what is 5 strikes>? 5 cents?

 

[AlphaRocks]

How much does it have to be to be deep in or out of the money? 10 cents?

Depends if you're long or short, have single or spread or some other strategy, and if you have a bullish or bearish view. Think more in terms of Delta, probability of success, and how much you're willing to risk for the reward you're trying to capture.

 

[K-Pia]

That's a joke ?
What's ITM ATM and OTM's about ?!
You talk without even knowing your subject.
Monyness is a relation between the underlying price,
And the strike of the option, which is the price you're allowed,
To buy or sell the underlying at. Strike increment depends on the underlying.
Therefore if there are options for every dollar. 5 strikes away ATM
Will be 5$ away from the underlying price. Unfortunately,
ATM options are not always equal to the underlying price.
FYI ATM options have in general a delta of around 0.5.
So 5 strike away is 5 strike away the ATM option.
You can see those strike on an option chain.
Search for ATM option, then 5 option away.

what is 5 strikes>? 5 cents?

 

[botpro]

Here's the "Equity Options Product Specifications" of CBOE:
http://www.cboe.com/products/equityoptionspecs.aspx

And here a real example (SPY options with all their strikes, expiration dates, and last prices etc):
http://finance.yahoo.com/q/op?s=SPY&straddle=true&date=1456444800
ITM and OTM are colored differently.