Tuesday, November 25, 2008

Stock Option Terms: Out of the Money Option (OTM)

Out of the Money Option (OTM):
An out of the money option is an option with no intrinsic value and where you cannot exercise the writer of the option. An out of the money option is a call option with a strike price higher than the current stock price or a put option with a strike price lower than the current price of the stock or underlying security.

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