Out of the money

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		+	Out of the money options refers to options which have no intrinsic value built into them. [[Call options]] are out of the money when the [[strike price]] is higher than the price of the underlying stock. [[Put options]] are out of the money when the strike price is lower than the price of the underlying stock.
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		+	The opposite of out of the money is [[in the money]]
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		+	For example: [[Apple]] shares trade at $100. Out of the money options will have strike price greater than $100.
-	Out of the money options refers to options which have no intrinsic value built into them. Call options are out of the money when the strike price is higher than the price of the underlying stock and Put options are out of the money when the strike price is lower than the price of the underlying stock.
	==See Also==		==See Also==
		+	*[[Options]]
		+	*[[Spot Price]]
		+	*[[Strike Price]]
		+	*[[Out of the Money]]
	* [http://www.optiontradingpedia.com/out_of_the_money_options.htm Out of The Money Options] by Optiontradingpedia.com		* [http://www.optiontradingpedia.com/out_of_the_money_options.htm Out of The Money Options] by Optiontradingpedia.com

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Revision as of 12:39, September 19, 2008

Out of the money options refers to options which have no intrinsic value built into them. Call options are out of the money when the strike price is higher than the price of the underlying stock. Put options are out of the money when the strike price is lower than the price of the underlying stock.

The opposite of out of the money is in the money

For example: Apple shares trade at $100. Out of the money options will have strike price greater than $100.

See Also

• Options
• Spot Price
• Strike Price
• Out of the Money
• Out of The Money Options by Optiontradingpedia.com

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