A put option is said to be out of the money if the current price of the underlying stock is above the strike price of the option. Out of the Money Options: a cheaper way to enter the world of stock option investing.Out of the money options (OTM) are a cheap, but risky way to enter the world of stock option investing. If it still out of the money at expiry, the option will expire worthless.
It is often said that the financial markets optikn driven by two human emotions: fear and greed. And there is a great deal of truth to this thought. The option can either be In the Money, Out of the Money or At the Money, also know as ITM, OTM and ATM. Options contracts give the holder the right to buy or monry an underlying security at a predetermined strike price for a limited amount of time. A put option is out-of-the-money when the strike price is below the current trading price of the underlying security.
Episods is moneu limited time offer. You May Also Like Continue Reading.