out-of-the-money

A call is out-of- the-money when the strike price is above the underlying futures price. A put is out-of-the-money when the strike price is below the underlying futures price. The CENTER ONLINE Futures Glossary

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The situation where an option has only time value as opposed to intrinsic value because of the relationship between the option's strike price and the current market price for the underlying instrument, the spot price. A call option is out of the money when the strike price is above the spot price. A put option is out of the money when the strike price is below the spot price. American Banker Glossary

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A term used to describe an option that has no intrinsic value. A call option with a strike price higher (or a put with a strike price lower) than the current market value of the underlying futures commodity. Since it depends on current prices, an option can vary from in the money to out of the money with market price movements during the life of the options contract. Chicago Mercantile Exchange Glossary

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A call option or warrant where the exercise price exceeds the asset price is out-of-the-money. For example, a call option on a share with an exercise price of 100p when the share price is 90p is out-of-the-money. A put option is out-of-the-money when the asset price exceeds the exercise price. For example, a put option on a share with an exercise price of 100p when the share price is 110p is out-of-the-money. Dresdner Kleinwort Wasserstein financial glossary

See also in-the-money and at-the-money. Dresdner Kleinwort Wasserstein financial glossary

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A call option is out-of-the-money if the price of the underlying instrument is lower than the exercise/strike price. A put option is out-of-the-money if the price of the underlying instrument is above the exercise/strike price.

See also in-the-money Exchange Handbook Glossary

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An option that has no intrinsic value because the price of the underlying is below the strike price of a call or above the strike price of a put. LIFFE