What is Out of the Money?
Definition of Out of Money: This is also known as OTM. This is an expression that signifies a put or call option having no intrinsic value as the exercise cost id below or above, the existing market cost of an underlying security, currency or commodity. An Out of Money consists of currency price is much lower compared to the strike cost. When the currency choices are out of money, the landlord holds the choice to expire or sell before a gain provided if the choice becomes ITM which stands for In the money. The other two classifications of choices are ITM, signifying in the money and ATM which stands for At The Money.