out of the money
Beyond prize positions
Out of the money describes an option contract with no intrinsic value—a call option when the stock price is below the strike price, or a put option when the stock price is above it.
Exercising would lose money, so these options are worth only their time value until expiration.
The calls expired out of the money when the stock failed to rally.
Opposite of in the money.
- call optionRight to buy at set price
- strike pricePredetermined option execution level
- put optionContract to sell later
- options tradingBuying and selling contracts
- bull marketPeriod of rising prices
vega · premium · hedging · intrinsic value · theta · warrant · delta · gamma · expiration date · oversold · derivative · overbought · futures contract · volatility · downturn · swap · rally · extrinsic value