Underwater
1. The condition of a call option when its strike price is higher than the market price of the underlying stock.

2. The condition of a put option when its strike price is lower than the market price of the underlying stock.

Also known as "out of the money."

Investopedia Says:
An underwater option would be worthless if it expired today.

Related Terms:
Call Option
In the Money
Option
Put Option
Strike Price

• Debt-Service Coverage Ratio (DSCR)
• Debt Signaling
• Debt-To-Capital Ratio
• Debt-To-GDP Ratio
• Debt-To-Income Ratio (DTI)
• Debt-To-Income Ratio (DTI)
• Deceased Alert
• Decentralized Market
• Decimalization
• Deck
• Declaration Date
• Decline
• Declining Balance Method
• Declining Industry
• Decoupling
• Decreasing Term Insurance
• Dedicated Portfolio
• Dedicated Short Bias
• Deductible
• Deduction
• Deed
• Deed In Lieu Of Foreclosure
• Deed Of Release
• Deep-Discount Bond
• Deep In The Money