(FINANCE) used to refer to an option that has no intrinsic value, given the prevailing spot price. The two obvious examples are the call option and the put option.
*If the strike price of a call option is greater than the current price (or "spot price") of the underlying stock, then there is no point in exercising the option.
*If the strike price of a put option is less than the spot price, then there is no point in exercising the option/
Please note that "having no intrinsic value" IS NOT THE SAME THING as "worthless." An option that is out of the money is not worthless, unless it is about to expire. Assuming there is a lot of time left on the option before it expires, there remains the possibility the spot price of the underlying item could move in a favorable direction, and make the option "in the money."
*If the strike price of a call option is greater than the current price (or "spot price") of the underlying stock, then there is no point in exercising the option.
*If the strike price of a put option is less than the spot price, then there is no point in exercising the option/
Please note that "having no intrinsic value" IS NOT THE SAME THING as "worthless." An option that is out of the money is not worthless, unless it is about to expire. Assuming there is a lot of time left on the option before it expires, there remains the possibility the spot price of the underlying item could move in a favorable direction, and make the option "in the money."
Buying a call option that is out of the money is a long position; buying a put option that is out of the money is a short position.
by Abu Yahya April 15, 2010
Get the out of the moneymug. Driver: Which direction is home?
Passenger: Just Ride-It-Out. Our house is all the way at the end of the road.
Passenger: Just Ride-It-Out. Our house is all the way at the end of the road.
by FireSonicLogan April 15, 2020
Get the Ride-It-Outmug. "We were just munging out at John's last night"
"We smashed a bong and decided to mung out for a few hours"
"We just munged out yesterday"
"We smashed a bong and decided to mung out for a few hours"
"We just munged out yesterday"
by SimonZulu August 15, 2012
Get the mung outmug. by Tammer the Slammer September 23, 2011
Get the Logging Outmug. by worrd. March 29, 2009
Get the Paid Outmug. He was definitely cattin’ out when he told me he was “riding that fine line between earth and lunacy.”
by Dr Bunnygirl August 1, 2019
Get the cattin’ outmug. 1. Used to describe an individual, usually in the military, who does not conform to military standards.
2. A complete and utter shitbag.
2. A complete and utter shitbag.
by nafogel September 17, 2010
Get the Out Of Regsmug.