Basics
Out-of-The-Money (OTM)
Option with no intrinsic value
What is Out-of-The-Money (OTM)?
Out-of-The-Money (OTM) An option with no intrinsic value. For calls: stock price below strike. For puts: stock price above strike. OTM options are cheaper but less likely to profit.
Complete Definition
An option with no intrinsic value. For calls: stock price below strike. For puts: stock price above strike. OTM options are cheaper but less likely to profit.
Example
AAPL at $150. The $160 call is $10 out-of-the-money.
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