Out of the money option


 

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Out of the money option

A call option is out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security.



Out of the money option

Similar Matches

Call option

Call option

An option which gives the holder the right but not the obligation to purchase a stated quantity of the underlying instrument (for example shares, indices, commodities etc) at a specified price on or before a given date.


Option holder

Option holder

A person who has an option that has not been exercised.


Currency put option

Currency put option

Contract that gives the holder the right to sell a particular currency at a specified price (exchange rate) within a specified period of time.


Greenshoe option

Greenshoe option

 Option that allows the underwriter for a new issue to buy and resell additional shares.


Option account

Option account

A brokerage account that is approved to hold option positions or trades.


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