out of the money

Definition

A call option whose strike price is higher than the market price of the underlying security, or a put option whose strike price is lower than the market price of the underlying security.

Use out of the money in a sentence

You should try and see if you can find a way to get involved with an out of the money play that may earn for you.

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Stocks that are out of the money are high risk, as everyone is looking out for that specific type and it can fluctuate at an alarming rate.

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Smelling profits, the shrewd investor took advantage of many out of the money calls when he saw the stock options priced above their market value.

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in the money bull put spread