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Out Of The Money - OTM
What Does Out Of The Money - OTM Mean?
1. For a call, when an option's strike price is higher than the market price of the underlying asset.
2. For a put, when the strike price is below the market price of the underlying asset.
Investopedia explains Out Of The Money - OTM
Basically, an option that would be worthless if it expired today.
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