What Does Out Of The Money - OTM Mean?
1. For a call, when an option's strike price is higher than the market price of the underlying asset.
2. For a put, when the strike price is below the market price of the underlying asset.
A call option whose strike price is higher than the market price of the underlying security, or a put option whose strike price is lower than the market price of the underlying security.
at the money - A condition in which the strike price of an option is equal to (or nearly equal to) the market price of the underlying security.
in the money - Situation in which an option's strike price is below the current market price of the underlier (for a call option) or above the...
close to the money - An option contract for which the strike price is close to the current market price of the underlying security.
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