Out Of The Money (OTM)
1. For a call, when an option's strike price is higher than the market price of the underlying asset.
2. For a put, when the strike price is below the market price of the underlying asset. Investopedia Says:
Basically, an option that would be worthless if it expired today. Related Terms:
At the Money
Call Option
Currency Option
Deep in the Money
In the Money
Option
Put Option
Spring Loading
Strike Price |