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

Covered option

Covered option

Option position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option.


European Options Exchange (EOE)

European Options Exchange (EOE)

Now AEX-Optiebeurs. See: Amsterdam Exchanges (AEX).


Call option

Call option

An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.


Option price

Option price

Also called the option premium; the price the buyer of the options contract pays for the right to buy or sell a security at a specified price in the future.


Nonqualifying stock option

Nonqualifying stock option

An employee stock option that does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise .


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