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Finance Dictionary and Glossary of Investment Terms
Out of the Money
Definition 1.
1. For a call, when an option's strike price is higher than the market price of the underlying stock. 2. For a put, when the strike price is below the market price of the underlying stock.
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Definition 2.
A call option whose strike price is higher than the market price of the underlying security, or a put option whose strike price is lower than the market price of the underlying security.
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