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
Cabinet Trade
volatility smile
Hedge Wrapper
in the money
option premium
See All Related Terms »

buy back
fixed income
Pension Benefit Guaranty Corporation (PBGC)