OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Out of the Money'

« Back to the Options Trading Glossary

What is Out of the Money in Options Trading ?

Out of the Money
An option is 'out of the money' in two different scenarios: First, a call option is out of the money when the contract has a strike price higher than the current market price of the underlying stock. Second, an Out of The Money put has a strike lower than the current market price of the underlying stock. An Out of the money option's premium has no intrinsic value and therefore the premium consists exclusively of time value.




Share
>
Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

Hi, this may be interesting you: Out of the Money! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/out-of-the-money/