Glossary › out of the money
Trading glossary · advanced
out of the money
A buy-or-sell ticket that would be worth nothing if you used it right now.
The fuller meaning
An option with no intrinsic value: a call whose strike is above the underlying's price, or a put whose strike is below it. Its premium is all time value, and if it expires out of the money the holder loses the whole premium.
out of the money, also called out-of-the-money.
Related words
at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger