What is Out of the Money (OTM)?
Out of the Money (OTM) (also called otm) — An option with no intrinsic value — a call above the price, or a put below it. It carries only time value.
In simple terms
OTM options are cheaper but expire worthless if they don’t move ITM.
Why Out of the Money (OTM) matters when you invest
Understanding out of the money helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Out of the Money (OTM) — frequently asked questions
What is Out of the Money (OTM)?
An option with no intrinsic value — a call above the price, or a put below it. It carries only time value.
What does Out of the Money (OTM) mean in the stock market?
An option with no intrinsic value — a call above the price, or a put below it. It carries only time value. OTM options are cheaper but expire worthless if they don’t move ITM.
Can you give an example of Out of the Money (OTM)?
OTM options are cheaper but expire worthless if they don’t move ITM.
Put it into practice — open a free account.
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