ITM puts or in the money puts are those that are profitable when exercised. In simple terms if the market price is lesser than the strike price then it is ITM in the case of put options. If the market price is more than strike price then it is an OTM put option. Let us look at a live example of ITM and OTM put options in the popularly traded Nifty options when the Nifty spot is 10,526.

PUT OPTIONS DETAILS

Strike Price

Bid

Bid

Ask

Ask

Net Chng

LTP

IV

Volume

Chng in OI

OI

Qty

Price

Price

Qty

9,000

2,250

1

1

34,950

-0

1

44

1,725

-60,975

19,71,900

9,050

675

0

1

150

-1

0

37

36

-

7,650

9,100

975

1

1

375

-1

1

39

145

-1,875

1,18,275

9,150

75

1

2

75

-

1

-

-

-

75

9,200

1,500

1

1

1,425

-1

1

38

511

-17,700

1,78,425

9,250

600

0

2

75

-1

1

36

1

-75

1,875

9,300

1,500

1

1

600

-0

1

36

400

-7,275

4,27,950

9,350

-

-

2

6,000

-1

0

31

1

-

1,725

9,400

1,350

1

1

5,400

-0

1

34

1,329

-7,425

3,60,450

9,450

3,600

0

2

150

0

1

33

18

-75

12,300

9,500

75

1

1

375

-1

1

30

8,170

-1,54,725

19,29,225

9,550

75

1

3

150

-2

1

28

59

-2,325

9,150

9,600

5,025

1

1

8,625

-1

1

27

7,062

-16,425

14,65,725

9,650

1,800

1

2

1,650

-1

1

26

81

3,450

12,900

9,700

1,200

1

2

900

-1

2

27

6,150

-62,475

8,85,900

9,750

150

2

3

450

-0

3

27

120

225

18,000

9,800

24,000

2

2

225

-1

2

25

16,879

-29,625

30,14,700

9,850

6,000

1

3

75

-1

2

24

467

-2,475

37,050

9,900

6,825

3

3

75

-2

3

23

14,315

35,925

14,16,150

9,950

75

3

4

300

-2

3

21

1,126

-8,700

45,375

10,000

75

4

4

4,800

-2

4

21

36,302

-68,475

38,48,400

10,050

7,500

4

5

4,275

-1

5

20

798

-2,550

55,425

10,100

75

6

6

75

-0

7

20

33,646

1,69,050

15,62,775

10,150

75

8

9

75

-0

9

19

1,604

1,725

72,300

10,200

1,350

11

11

1,050

0

11

18

60,361

-1,36,650

25,28,325

10,250

75

11

15

300

-2

12

16

6,005

48,975

1,83,975

10,300

1,875

21

21

300

4

21

17

89,075

98,100

18,55,950

10,350

75

27

30

75

7

29

17

10,977

91,350

2,73,600

10,400

4,050

38

39

1,425

10

39

16

1,34,641

-1,52,400

21,88,725

10,450

750

52

53

75

14

52

16

12,193

24,750

2,80,350

10,500

375

70

71

225

21

70

16

1,99,613

-1,34,625

29,78,550

10,550

1,275

90

92

2,250

27

90

15

26,398

1,19,850

3,94,050

10,600

3,975

118

119

75

38

119

15

1,86,242

-7,32,900

20,71,200

10,650

150

152

153

75

50

152

16

17,271

-72,375

1,25,175

10,700

75

185

190

375

60

190

16

82,761

-2,51,775

8,85,075

10,750

75

225

238

75

75

237

18

922

-9,225

31,125

10,800

75

278

281

900

80

281

19

11,911

-61,725

2,59,800

10,850

75

321

375

75

84

321

19

126

-4,275

10,275

10,900

75

364

380

75

93

378

23

3,047

-27,975

1,52,850

10,950

225

407

-

-

34

399

-

3

-75

4,425

11,000

300

479

480

225

101

480

27

2,878

-22,125

6,35,250

11,050

750

325

540

225

-

309

-

-

-

75

11,100

75

573

581

75

107

572

29

316

-17,175

50,325

11,150

225

557

-

-

-

991

-

-

-

150

11,200

75

671

679

75

99

674

33

92

-2,025

1,39,275

11,250

750

678

750

375

-

-

-

-

-

-

11,300

75

771

779

75

106

771

35

87

-2,250

64,650

11,350

225

586

-

-

-

-

-

-

-

-

11,400

150

874

883

75

101

878

42

64

-525

84,900

11,450

225

628

-

-

-

1,226

-

-

-

75

11,500

150

969

974

150

101

968

40

386

-11,175

5,40,825

11,550

750

977

1,043

225

-

-

-

-

-

-

11,600

75

1,056

1,092

75

133

1,074

47

29

-1,125

27,300

11,650

225

1,056

1,138

225

-

-

-

-

-

-

11,700

75

1,152

1,182

150

21

1,072

-

1

-75

26,325

11,750

225

1,171

1,295

3,750

-

-

-

-

-

-

11,800

150

1,261

1,280

75

98

1,248

-

2

-75

7,800

11,850

4,725

793

1,340

150

-

-

-

-

-

-

11,900

75

1,359

1,389

75

120

1,361

48

52

-150

32,475

11,950

225

1,212

1,444

3,750

-

1,215

-

-

-

75

12,000

75

1,468

1,474

75

109

1,473

59

352

-21,750

5,48,850

The above table is perfect for your understanding of put options. While the Nifty is quoting at a spot of 10,526, we have covered all put strikes from 9000 till 12,000. You will find that as you go deeper out of the money (towards 9,000 strike) or very deep in the money (towards 12,000 strike), the volumes start to dwindle quite rapidly. Even the OI concentration is the maximum in the 10 strikes that are around the spot price of Nifty. This concentration keeps changing and shifting depending on the movement of the Nifty spot price. Normally shifts in OI and OI concentration are studied by analysts and traders to take a view on which direction the markets could be veering towards.