← Options Glossary

Out-of-the-money

A call option is out-of-the-money if the strike price is greaterthan the market price of the underlying security. A put optionis out-of-the-money if the strike price is less than the marketprice of the underlying security.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.