Out of the Money (OOTM)

When the option is worthless

Out of the money is a trading term referring to the value of options. If an option is said to be 'out of the money' then it is worthless. Out of the money does not mean you have lost your money yet, because the loss has not been realized. However, it does mean that selling the option at that point in time will lose your money.

For options:

Excel Modeling Course

Everything You Need To Master Excel Modeling

To Help You Thrive in the Most Prestigious Jobs on Wall Street.

Learn More

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources: