Options
Out-of-the-Money (OTM)
An option with no intrinsic value: a call is OTM when the strike exceeds the underlying price; a put is OTM when the strike is below. OTM options are cheaper but require a larger move to become profitable.
Options
An option with no intrinsic value: a call is OTM when the strike exceeds the underlying price; a put is OTM when the strike is below. OTM options are cheaper but require a larger move to become profitable.