DOTM


Also found in: Acronyms.

DOTM

Deep Out of the Money

1. A put option with a strike price less than half the value of the underlying asset.

2. A call option with a strike price more than double the value of the underlying asset.

In both these situations, the option contract has no intrinsic value. It is unlikely that the option will be in the money by the time the option is exercised.