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.
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