According to this, a 55 Aug QQQ put will lose money if it is $54.55 by August 8th. Why? $54.50 is ITM for a 55 put, is it not? (the numbers on there are ROI as a percentage of maximum loss, NOT dollar amounts. For some reason, you cannot select dollar amounts for buying calls/puts on that calculator, although you can for other strategies)
Currently selling for $1.25 http://finance.yahoo.com/q?s=QQQ110820P00055000 Minus 31% with one week before expiration looks about right. Sell at about $0.86. Is that August 8 or August 13? I think it's August 13.
You would have to post the entire paragraph or link to what you read, one sentence can be taken out of context.
It currently has $1.27 of time value and no intrinsic value at all. 54.50 is only $0.50 in the money. So it will only be worth 50 cents when it expires. "in the money" only means that it has some intrinsic value. It doesn't mean that it wil be profitable. Put another way, ITM/OTM only refers to which side of the strike price it is on.
This is one of those rare opportunities to actually identify the easy money on the other side of some of my option trades.