| 释义 |
Deep Out Of The Money
An option with a strike price that is significantly above (for a call option) or below (for a put option) the market price of the underlying asset. To be deemed significantly above/below, an option's strike price should be at least one strike price below/above the market price of the underlying asset's option chain. Investopedia Says:
For example, if the current price of the underlying stock is $10, a put option with a strike price of $5 would be considered deep out of the money.
While a deep of out the money option seems worthless, the derivative still holds some value. All options, both in and out of the money, contain time value. Time value measures the benefit of having an option with time remaining until maturity. So, while a deep out of the money call or put has no intrinsic value, some investors may be willing to pay a small amount for the remaining time value. However, this time value decreases as the option moves closer toward its expiry date. Related Terms:
Deep In The Money
Derivative
Intrinsic Value
Moneyness
Strike Price
Time Value |