Out of the Money
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| 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. | ||
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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 ... Assignment Refers to the option writer's (seller's) obligation to sell or buy a stock or other financial ... | ||
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