Out of the money

Out Of The Money
An option or warrant with negative intrinsic value. For example, a call option/warrant whose exercise price is higher than the price of its underlying asset has no intrinsic value and is out of the money.

Out of the Money
When an option trader bets the wrong way on an option, for call options when the stock or other type of security is worth less than the options strike price. The opposite is true for put options.

out of the money options
time premium
volatility option premium
Definition: The term out of the money describes the relation of the strike price of an option and where the underlying futures market is currently trading.

Out Of The Money
Definition:
A Call whose strike price is above the current Market price of the Underlying equity. A put whose strike price is below the current price of the underlying security. ...

Out Of The Money
Out-Of-The-Money is a put option with a strike price lower than the underlying futures price, or a call option with a strike price higher than the underlying futures price. Related: In-the-Money.
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Out of the Money
Refers to an options contract that has no intrinsic value; for instance, a call option whose ...
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Out Of The Money - If a commodities contract is purchased while it is still losing money; it is referred to as out of the money. If a call option is purchased when the current price is below the strike price, it would fall into this category.

Out Of The Money - OTM
1. For a call, when an option's strike price is higher than the market price of the underlying asset.
2. For a put, when the strike price is below the market price of the underlying asset.

Out of the money stock option
An out of the money stock option is a high risk high reward trade. Some traders actually perfer that.

OUT OF THE MONEY A call option is out-of-the-money if the strike price is greater than the market price of the underlying security. A put option is out-of-the-money if the strike price is less than the market price of the underlying security.

Out of the Money
Definition: Options are said to be out of the money when they can't be exercised. For call options, this occurs when the stock price is below the strike price.

Out of the Money - Describing an option that has no intrinsic value.

Out of the Money (OTM): An option that has no intrinsic value. For a call, this is a strike price above the current price and for a put this is a strike price below the current price. See also At the Money, In the Money ...

Money (out of the money)
A warrant with an exercise price above (for a call warrant) or below (for a put warrant) the price of the underlying security.

Deep in/out of the money
A call option with an exercise price substantially below the underlying stock's market price (deep in the money) or substantially above the market price (deep out of the money).

Out of the Money
A call option with a strike price higher or a put option with a strike price lower than the current market value of the underlying asset.
Over the Counter Market ...

Out of the money
An option is considered to be 'out of the money' when the underlying's price is lower than the option's strike price (call option) or exceeds the strike price (put option).

Deep out of the money
A call option with an exercise price substantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price.

OTM = Out of the Money
ITM = In the Money
ATM = At the Money
Sarish
What does OTM stand for? Thanks for your response:) ...

Also known as "out of the money."
Investopedia Says:
An underwater option would be worthless if it expired today.

existing stock price, referred to as 'In the money'
A future price that is the same as the existing stock price, referred to as 'At the money'
A future price that is higher than the existing stock price, referred to as 'Out of the ...

Anyway, deep out of the money April Puts are trading multiple times their open interest. So there is a lot of either hedging or massive short building on Lehman.

deep in the money An option that is so far in the money that the chances of it going out of the money prior to expiration are small.

At this point your option is 'out of the money,' that is, it is worth less than it's cost. You are probably wondering how this gives you any advantage. why not just buy the $50 stock? Well, if the stock increases in value by 10%, it is now worth $55.

The iron condor is created by selling an out of the money put option whilst buying at a lower strike price and out of the money put option, ...

Conservative investors sell an "out of the money" call option on a stock that is part of their portfolio to increase the overall return on their portfolio.

In general we can say that an option / warrant "out of the money" has a stronger leverage effect and hence is a riskier option in the money.
Reminder: the higher the product is optional "outside money" plus the premium and the delta are small.

OUT-OF-THE-MONEY (option) An option that has no intrinsic value it is said to out of the money. A call is out of the money when the strike price is higher than the current price.

The extent to which an option is in or out of the money, expressed as a percentage of the current spot, forward or future depending upon the nature of the underlying asset. Positive moneyness is in the money.
Money Market: ...

On the Monday before option expiration, buy three strangles on Google, CME, or RTP that are 2 strikes out of the money for that expiration. For example, on Monday, May 15th, with expiration Friday on May 19th, Google is at 400.

Asian option: Normally options use the price of the underlying to determine whether on expiry the option is in or out of the money.

Equity Value = Market capitalization + fair value of all stock options (in the money and out of the money), ...

Ratio Spread
Buying a specific quantity of options and selling a larger quantity of out of the money options.
Ratio Calendar Spread
Selling more near-term options than longer maturity options at the same strike price.

The puts and calls are weighted according to time remaining and the degree to which they are in or out of the money. The result forms a composite hypothetical option that is at-the-money and has 30 days to expiration.

Options selected for this index are one call and one put just out of the money, and one call and one put just in the money, for each of the two front months of the OEX (S&P 100).

One way to generate some returns might be to use a covered call strategy or low-leverage out of the money bull-put strategy for the short-term.
"However, bonds and stocks are not the only investment options" ...

Also known as time value. Extrinsic value is the price of an option minus its intrinsic value. As out of the money options have no intrinsic value, their option premium is based entirely on extrinsic value.
Fair Market Value ...

Hedge Wrapper: An options strategy whereby the holder of a long position in an underlying security buys an out of the money put and sells and out of the money call.

This strategy consists of a hypothetical portfolio made up of a "long" position indexed to the S&P 500 Index and the sale of a succession of one-month, at or slightly out of the money S& ...

For a put option this is reversed. Where the exercise price is lower than the current price it is out of the money and when it is higher than the current price it is in the money.
Time Value ...

It is based on the S&P 500 put and call options, which are weighted by the time remaining and the extent to which they are in or out of the money.

In effect, the pool volatility is nullified and the parties pay and receive $50 per MWh. However, the party who pays the difference is "out of the money" because without the hedge they would have received the benefit of the pool price.

This intra-month difference in implied volatility values through different strikes is known as a vertical volatility skew. The reason the markets run volatility skews is to make sure that out of the money options have enough premium in them to ...

A trade made in an inactive stock or bond. A cabinet trade also may be an off-market transaction that is completed in order to close out a nearly worthless option contract because it is out of the money.
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If you don't have a computer, the rough rule-of-thumb for calculating Delta is: 75% for an option $5.00 in the money, 50% for an option at the money, and %25 for an option $5.00 out of the money.

reference to the difference between the strike (exercise) price of the option and the current underlying share price. In the case of a call option, if the current share price is below the strike price, then the option is said to be "out of the money" ...

with a strike price higher than the current price of the underlying shares.) You should almost never sell the current expiration month because options prices decline as they get closer to expiration and you shouldn't go too far out of the money ...

Discount callables, priced below face value, or par, with a coupon below the going market rate, have embedded options that are "out of the money.

derivatives and other obligations is disclosed in the footnotes of the annual report in many countries. And in some countries, banks are required to show their mark-to- market "in the money" positions as an asset and their "out of the money" ...

See also: Option, Options, Market, Trading, Call