Out-of-the-Money
An option with no intrinsic value (call: strike > underlying; put: strike < underlying).
Full Definition
OTM options are cheaper but have lower probability of profit. They have only extrinsic value.
An option with no intrinsic value (call: strike > underlying; put: strike < underlying).
OTM options are cheaper but have lower probability of profit. They have only extrinsic value.