A put option is in-the-money if the current value of the asset is below the exercise price and out-of-the-money if it is above it.
What does OTM stand for?
OTM stands for Out-Of-The-Money (options trading)
This definition appears very frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of OTM
We have 96 other meanings of OTM in our Acronym Attic
- Organizacion Tohil Morales de los Ninos Mayas de Guatemala (Spanish; Mayan group; Guatemala)
- Orthographic Transcription Module
- OSHA Technical Manual
- Other Than Mexican
- Other Than Miata
- Other Track Material (railroad industry; small item inventory like spikes, anchors, tie-plates, bolts)
- Other Train Movement (railroads)
- Other Training Material
- Ottumwa, IA, USA - Ottumwa Industrial Airport (Airport Code)
- Out to Medical
- Outbound Telemarketing
- Output Trigger Mode (Agilent)
- Over the Monster (blog)
- Over the Moon
- Over Thirty Months (food supply criteria; UK)
- Overturning Moment
- Oxygen Transport Membrane
- Oakland Transportation Management Association (Pittsburgh, PA)
- Office Technology Management Association
- Olga, Tatiana, Marie, Anastasia (Romanov grand duchesses)
Samples in periodicals archive:
Are we out of touch by forecasting an out-of-the-money finish today for Giacomo in the Big `Cap?
They are also referred to as at-the-money or out-of-the-money options.
The rights, of course, are out-of-the-money until the occurrence of a flip-in or flip-over event (an acquisition of X Corp.
Most popular was the out-of-the-money September 37.
To initiate the spread, the investor would sell an at-the-money or slightly out-of-the-money call, and simultaneously purchase a cheaper, deeper out-of-the-money call with the same expiration date.
In order to capitalize on a security's stagnation in the near term, the trader would simultaneously sell an equal number of slightly out-of-the-money puts and slightly out-of-the-money calls with the same expiration date.
Second, the Company will reprice outstanding out-of-the-money stock options held by them.