A call option is in the money (ITM) when the market price is above the strike price. A put option is ITM when the market price is below the strike price. What would be the breakeven price of a call option or a put option? The key factors that determine the value of an option are the difference between strike and market prices, the time to expiration and the volatility of the stock price. You must understand how these factors influence the option premiums. What is a covered call and why would an investor use this strategy? What is a protective put? What is the exercise value of an option? What is the time value?