out-of-the-money option
Definition
Option with a negative intrinsic value. A call-option is out-of-the-money when its exercise price is above the current market price of the underlying contract. A put option is out-of-the-money when its exercise price is below the current market price of the underlying contract. Also called underwater option. See also at the money option and in the money option.
Popular 'Commodities & Precious Metals Trading' Terms
out-of-the-money option in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/out-of-the-money-option.html
