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InvestHub.com's
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.
 

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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