Out of the Money

Out of the Money

An out-of-the-money option is one that has no intrinsic value thus will expire without being exercised. In other words, the underlying has failed to hit the option’s strike price. Call and put options can both be out of the money – the former if the underlying trades below the option strike price; the latter if the underlying trades above the option strike price.

logo-animationlogo-animationlogo-animation

Related terms