Also found in: Medical, Acronyms.


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.
References in periodicals archive ?
As a start for this partnership, YOOSE and OTM have launched a campaign around the Sochi Olympic Games to create awareness for the use of the free WiFi at the Games' venues for a large telecom provider.
Explaining OTM's importance in boosting business, Subhash Goyal, president, IATO (Indian Association of Tour Operators) said, "The role played by OTM is very important in guiding outbound travellers.
Clean OTM Steers to 199 (pounds 1,253); Heifers to 193 (pounds 1,203).
The 36 node SRW assessment is one of approximately 25 critical activities that directly support the C4ISR OTM E10 campaign goals, said Mr.
Second, they reported that the comparison between MTO and OTM was in favor of MTO as number of classes and members increased.
OTM services allow operators to offer electronic bill presentment, analysis, split billing, and fleet management to customers, leading to higher customer retention and lower operational cost.
You may never have heard of an OTM, which is not surprising since the authors of this article created the acronym.
The lifting of the OTM rule opens up a market that dairy farmers had access to until the restrictions of 1996.
Mr Hughes added, 'It is, however, absolutely vital that the OTM compensation scheme continues until the current beef export restrictions are lifted, if we are to avoid over-supply or price collapse in the market place.
Manchester Tool Company introduces a new 180-page catalog, featuring the OTM line of drills and mills.
The polypropylene was melted and the polypropylene, the clay mineral, the Ma-g-PP and the OTM were premixed in this section.
We are very pleased to be working with Dell, the world's leading PC manufacturer, on the NaviLite project," says Gilad Lederer, president and CEO of OTM Technologies.