Qwoter Investment Advice
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

Out of the Money

Refers to an options contract that has no intrinsic value; for instance, a call option whose exercise price is above the current market price of the underlying security or futures contract.

Additional Comments:

For a call, when an option's strike price is higher than the market price of the underlying stock.

For a put, when the strike price is below the market price of the underlying stock.

Related Terms:

In the Money
(ITM) If you were to exercise an option and it would generate a profit at the ...

Intrinsic Value
This is a measure of any real value to the option. The amount by which an ...

Refers to the option writer's (seller's) obligation to sell or buy a stock or other financial ...

«  View the Stock Market Dictionary  »