Options and Futures

Out-of-the-Money Option

An option that holds no inherent value, meaning its strike price is higher than the current price of the futures contract or its strike price is lower than the current futures price. This type of option is known as "out of the money" and does not hold any profit potential at the current market conditions. It is important to understand the concept of intrinsic value when trading options, as it can greatly impact your investment decisions.

Related terms

Forward (Cash) Contract

Understand the meaning and definition of Forward (Cash) Contract in the context of stock market, trading, and investments.

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Resumption

Understand the meaning and definition of Resumption in the context of stock market, trading, and investments.

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Uncovered call writing

Understand the meaning and definition of Uncovered call writing in the context of stock market, trading, and investments.

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Uncovered put writing

Understand the meaning and definition of Uncovered put writing in the context of stock market, trading, and investments.

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Negative Yield Curve

Understand the meaning and definition of Negative Yield Curve in the context of stock market, trading, and investments.

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Runners

Understand the meaning and definition of Runners in the context of stock market, trading, and investments.

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