Finance glossary
Out of the Money
Definition
An option with no intrinsic value if exercised now.
An option is out of the money when exercising it would not be profitable: a call with a strike above the market price, or a put with a strike below it. These options consist entirely of time value and expire worthless if the price does not move favorably before expiration.
In a sentence
Her $150 call expired worthless because the stock never climbed out of the money.
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