Out-of-the-Money Option

Definitions

1, An option with no intrinsic value, i.e., a call whose strike price is above the current futures price or a put whose strike price is below the current futures price. Its value is solely time related.

2, A term used to describe an option that has no intrinsic value. For example, a call with a strike price of $800 on gold trading at $790 is outof-the-money $10.

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