Out of the money
An option whose strike price is above the current price of the underlying stock or future (for call options) or below the current price of the underlying stock or future (for put options). With Cisco trading at $70, both the $60 put options and $80 call options are out of the money. Out-of-the-money options have no intrinsic value.
Articles related to Out of the money
June 9, 2008
David Goodboy
Some traders sell naked options, which is wrought with danger and risk. The potential for profit is great, but he potential for loss if even greater. Here is a system you can use to trade options a little safer.
(more)June 3, 2008
David Goodboy
Greek words aren't just for mythological creatures and fraternities. Here are some Greek terms used by options traders.
(more)<< Back to Trading Glossary Index
