Under Water
|
| ||
| A stock option for which the option's grant price is higher than the current market price for the underlying stock. | ||
|
Additional Comments:
In view of the context for this phrase, "under water" seems to be a "buzzword" term used by stock traders to describe or characterize stocks that have sunk, usually quickly and drastiscally, in their market value.
For example, if you have options to buy your company stock at a strike price of $50, and the stock is currently trading at $30, you're $20 underwater on each option. You can see how the next step may be drowning -- financially speaking, of course. |
Related Terms: | ||
Out of the Money Refers to an options contract that has no intrinsic value; for instance, a call option whose ... Options An option is a type of derivative - its value is derived from an underlying asset, ... Intrinsic Value This is a measure of any real value to the option. The amount by which an ... | ||
« View the Stock Market Dictionary »
Latest Financial Advice
Free Investment Advice
| Get free stock market tips and investing advice by subscribing to our newsletter: |
* Your information will not be shared or sold. |
Recommended Reading
Categories
- Trading Basics
- Investing 101
- Investing Essentials
- Understanding the Risks
- Beginning to Trade
- Trading Strategies
- Trading Psychology
- Retirement Investing
- Personal Finance
- Advanced Trading
- Penny Stocks
- FOREX Trading
- Commodity Futures
- Stock Tips
- Going Public
- Real Estate
- Research Tools
- Stock Spam
- Reviews
- Stock Market Dictionary
RSS