| Out of the Money | |
 1. For a call, when an option's strike price is higher than the market price of the underlying asset. 2. For a put, when the strike price is below the market price of the underlying asset. |
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 Basically, an option that would be worthless if it expired today. |
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 Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Alternatives to Closing Below Intrinsic Value - Understanding how options work and the markets they trade in will help you get a better price for your option. |
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Related Terms
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