DEFINITION of 'Deep Out Of The Money'
An option with a strike price that is significantly above (for a call option) or below (for a put option) the market price of the underlying asset. To be deemed deep out of the money, an option's strike price should be at least one strike price below/above the market price of the underlying asset's option chain.
BREAKING DOWN 'Deep Out Of The Money'
For example, if the current price of the underlying stock is $10, a put option with a strike price of $5 would be considered deep out of the money.
While a deep of out the money option seems worthless, the derivative still holds some value. All options, both in and out of the money, contain time value. Time value measures the benefit of having an option with time remaining until maturity. So, while a deep out of the money call or put has no intrinsic value, some investors may be willing to pay a small amount for the remaining time value. However, this time value decreases as the option moves closer to its expiry date.

Deep In The Money
An option with an exercise price, or strike price, significantly ... 
In The Money
1. For a call option, when the option's strike price is below ... 
Out Of The Money  OTM
A call option with a strike price that is higher than the market ... 
At The Money
A situation where an option's strike price is identical to the ... 
Strike Price
The price at which a specific derivative contract can be exercised. ... 
Near The Money
An options contract where the strike price is close to the current ...

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The strike price is the price at which a derivative can be exercised, and refers to the price of the derivativeâs underlying asset. In a call option, the strike price is the price at which the ... 
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What is the difference between in the money and out of the money?
Learn about how the difference between in the money and out of the money options is determined by the relationship between ... Read Answer >> 
How does the term 'in the money' describe the moneyness of an option?
Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >> 
How do I change my strike price once the trade has been placed already?
Learn how the strike prices for call and put options work, and understand how different types of options can be exercised ... Read Answer >> 
Where did the terms inthemoney and outofthemoney come from?
Learn what the terms "in the money" and "out of the money" mean, where the terms come from, and how investors use the terms ... Read Answer >> 
What happens when a security reaches its strike price?
Learn more about the moneyness of stock options and what happens when the underlying security's price reaches the option ... Read Answer >> 
When is a put option considered to be "in the money"?
Learn about put options, what they are, how these financial derivatives operate and when put options are considered to be ... Read Answer >>