out of the money
An option contract that has not yet earned a paper profit. For a call option, out of the money means that the underlying asset is trading above the strike price. For a put option, the term indicates that that it is trading below it. Compare to in the money.
Browse by Subjects
option premium
Hedge Wrapper
volatility smile
strangle
in the money
See All Related Terms »

net dividend per share
European Currency Unit
Swiss Franc (CH)
underwrite
disburse