Option seller's ITM and OTM are just opposit of option buyer's ITM and OTM

F&O
1

As per my understanding… ITM and OTM are just opposit for option seller and option buyer…

In my opinion
(1) An ITM for option buyer is an OTM for option seller
(2) An OTM for option buyer is an ITM for option seller

Is my understanding correct ??

2

ITM and OTM are the same for both buyers and sellers. Its not about profits/losses, all it means is that the strike is ITM/OTM

3

I think it is the intrinsic value that determines if an option is ITM/ATM/OTM, and this is done by comparing the Spot price with the Strike price.

Theoretically, An ITM is profitable for the buyer/holder, as it will be exercised.

An OTM option is profitable for the seller/writer, as it will lapse.

Assuming there is both a Call and a Put option having the same strike price, for the same underlying security, then, what is ITM for Call will be OTM for Put and vice versa.

So, this is the only time when ITM and OTM can be opposite for the same strike price.

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