(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. Well known rapper. One ghettolicious sex machine. A decipal of satan. Offended by the small, and everyone else for that matter.
by Mcclovinyourmom June 28, 2009
Get the C Moneymug. by GaterSkater September 18, 2013
Get the getting moneymug. adjective
derivative of the term "cashed"
1. when the marijuana in a certain "consumption receptacle" has been reduced/burnt to ash.
2. one being physically or mentally exhausted.
derivative of the term "cashed"
1. when the marijuana in a certain "consumption receptacle" has been reduced/burnt to ash.
2. one being physically or mentally exhausted.
by hood rich productions December 3, 2009
Get the K moneymug. v. When you have sex with hot teacher (or ugly one depending on your moral compass) then proceeding in informing the police and sue the district for employing a pedophile rapist. You get a good banging (more than once depending on the victims wants) and make some money. Also known as "THE AMERICAN WAY"
kid 1: "yo bro you got to bang ms. hammel?"
kid 2: "yea banged her 10 times and got 12 million dollars"
kid 1: "why did you do that?"
kid 2: "cause I am a patriot and thats how you perform the perfect money sex"
kid 1: "god bless america"
kid 2: "yea banged her 10 times and got 12 million dollars"
kid 1: "why did you do that?"
kid 2: "cause I am a patriot and thats how you perform the perfect money sex"
kid 1: "god bless america"
by I dont know who I am, DAD? January 10, 2012
Get the money sexmug. Describes the ability to have a say in what happens with money. Involves influence over large deals, financial transactions, and business dealings. Results from power, wealth, and/or position.
by Lam Sauce June 1, 2018
Get the money movemug. by soulless joe solis 555 December 20, 2010
Get the milk moneymug.