out-of-the-money option
noun[C]
ukusSTOCK MARKET
anoption(=righttobuyorsellshares, etc.) which has novaluebecause theshares, etc. can be only beboughtfor abovetheirpresentprice, orsoldfor less thantheirpresentprice:
Thebesttimetobuyan out-of-the-moneyoptionis when youexpectmarketvolatilitytoincrease.
Compare
at-the-money option
in-the-money option