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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

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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Round-Turn (futures)

Understand the meaning and definition of Round-Turn (futures) in the context of stock market, trading, and investments.

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Commission (or Round Turn)

Understand the meaning and definition of Commission (or Round Turn) in the context of stock market, trading, and investments.

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Moving Average Charts

Understand the meaning and definition of Moving Average Charts in the context of stock market, trading, and investments.

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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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Time-Stamp

Understand the meaning and definition of Time-Stamp in the context of stock market, trading, and investments.

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