Out-of-the-money

Out-of-the-money

A term used to describe an option that has no intrinsic value. For example, a call at $400 on gold trading at $390 is out-of-the-money 10 dollars.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Financial services
Category: Commodity exchange
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Related terms

out of the money

Banking; Investment banking

Feature of an option when the spot price of the underlying is below (in the case of a call) or above (in the case of a put) the strike price. See also at the money, in the money.

out-of-the-money

Financial services; Commodity exchange

A term used to describe an option that has no intrinsic value. For example, a call at $400 on gold trading at $390 is out-of-the-money 10 dollars.

out of the money

Sports; Horse racing

A horse that finishes worse than third.

out of the money

Financial services; Funds

A call option is out of the money if the strike price is greater than the market price of the underlying security. A put option is out of the money if the strike price is less ...

out of the money

Banking; Personal banking

The situation where an option has only time value as opposed to intrinsic value because of the relationship between the option's strike price and the current market price for the ...

out-of-the-money option

Financial services; Commodity exchange

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.

margin

Financial services; Commodity exchange

Financial safeguards to ensure that clearing members (usually companies or corporations) perform on their customers' open futures and options contracts. Clearing margins are ...

back pricing

Financial services; Commodity exchange

Fixing the price of a commodity for which the commitment to purchase has been made in advance. The buyer can fix the price relative to any monthly or periodic delivery using the ...

cost of carry

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures ...

carry

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures ...

carrying charge

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures ...