Out-of-the-money

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Out-of-the-money is an adjective used to describe an option that has no intrinsic value, i.e., all of its value consists of time value. A call option is out of the money if the stock (or futures) price is below its strike price. A put option is out of the money if the stock (or futures) price is above its strike price. Options are offered for trading both in the securities and futures markets.

Also See:

In-the-money

At-the-money