out-of-the-money option

An option with no intrinsic value, i.e., a call whose strike price is above the current futures price or a put whose strike price is below the current futures price. Chicago Board of Trade glossary
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A call option is " out of the money" if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security. Bloomberg Financial Dictionary

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out-of-the-money option out-of-the-money option option

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out-of-the-money option UK US noun [C]
STOCK MARKET an option (= right to buy or sell shares, etc.) which has no value because the shares, etc. can be only be bought for above their present price, or sold for less than their present price: »

The best time to buy an out-of-the-money option is when you expect market volatility to increase.

Compare AT-THE-MONEY OPTION(Cf. ↑at-the-money option), IN-THE-MONEY OPTION(Cf. ↑in-the-money option)

Financial and business terms. 2012.

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