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deep-out-of-the-money

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deep-out-of-the-money
1. Used to describe a call option with a strike price significantly above the market price of the underlying asset. A deep-out-of-the-money call option sells at a low price because in all likelihood it will expire without value.
2. Used to describe a put option with a strike price significantly below the market price of the underlying asset. A deep-out-of-the-money put option sells at a low price because in all likelihood it will expire without value.
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If you are concerned about a late-summer yield-reduction event, consider buying an at-the-money call and selling a deep-out-of-the-money call
Outlook by Farm Journal
A bull-call spread lets you buy a near-the-money call option, while selling a deep-out-of-the-money call option, to lower your out-of-pocket cost, for example.
Time to engage options: ten tips to a get past the flirting stage: ... by Williams, Elizabeth Curry / Top Producer
Ahead of the report, options speculators piled into the equity's deep-out-of-the-money May and June 27.
Schaeffer's Street Chatter Highlights the Following Stocks: JetBlue ... by Business Wire
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