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Out-of-the-Money Option |
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Out-of-the-money option A call option is "out of the money" if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security. Out-of-the-Money Option 1. A call option with a strike price more than the value of the underlying asset. 2. A put option with a strike price less than the value of the underlying asset. In both these situations, the option contract has no intrinsic value. If an option is deep out of the money, it is unlikely that the option will be in-the money by the expiration date. If possible, out-of-the-money options are sold; if not, they expire worthless and the option holder loses the premium. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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Assignment At the Money At-the-Money Automatic Exercise Deep-in-the-Money Delta Gamma Hedge Wrapper In-the-Money In-the-Money Option OTM Out of the Money Out-of-the-Money Ratio Spread Repricing Strangle | The price of an ITM option ( Rs 150) is higher than the price of an OTM option ( Rs 95). It should ideally be an OTM option, where the strike price is higher than the market price of the underlying stock. htm) while the most aggressive traders may choose to specialize in leveraged speculation using OTM options. |
OTM Option |
OTKI OTKM OTKO Otkrovenie Ioanna Otkrytoe Aktsionernoe Obschestvo OTKSL OTL OTLA OTLB OTLC OTLD Otley Action for Older People Otley Disability Advisory Group OTLF OTLG OTLK OTLM OTLMP OTLS OTLT OTLV OTM OTM OTM Option OTM OptionsOtm Shank Jazz Quintet OTMA OTMANT OTMAPP OTMC OTMD OTME OTMF OTMFL OTMG OTMH OTMI OTMIP OTMIR OTML OTMM OTMOP OTMP OTMPC OTMR OTMS OTMT OTMW | |||||||
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