Advantages of In the Money (ITM) Call Options
Once an option is in the money, it's possible to buy a security at a reduced price. This is because the trader doesn't need to own any stock to profit from the option, which can be very important in volatile markets.
When a call option goes into the money, the value of the option increases for many investors. Out-Of-The-Money (OTM) call options are highly speculative because they only have extrinsic value.
Some parts of the options market can be illiquid, but other areas might not be. Retailers of thinly traded stocks and people who are in the market for far out of the money options may find it difficult to sell them at the prices implied by Black Scholes model. If the underlying asset in your option contract is worth more than the strike price by expiration, then your call has gone into the money. As an example, ATM options are often the most liquid ones because they capture the transformation of OTM options into ITM ones.
As a rule, people don't exercise their options before they go out of the money. This also means that any remaining time value is lost. The main exception is when an option is worth a lot of money and its time decay is increasing. In this case, call options are usually the better choice since they tend to be more profitable as time passes.
