Meaning of “out-of-the-money option” in the English Dictionary

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"out-of-the-money option" in Business English

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out-of-the-money optionnoun [ C ]

uk us

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.

(Definition of “out-of-the-money option” from the Cambridge Business English Dictionary © Cambridge University Press)