Out of the Money (OTM)

An option that has no intrinsic value because exercising it would not be profitable at the current market price.

An option is out of the money (OTM) when it has no intrinsic value. A call option is OTM when the strike price is above the underlying’s market price; a put option is OTM when the strike price is below the market price. OTM options consist entirely of time value and are cheaper than ITM or ATM options, making them popular for directional bets with limited capital, though they carry a higher risk of expiring worthless.

More terms starting with "O"

OI Confluence

The overlap of high open interest across multiple strikes or expiries, used to identify stronger, more reliable support and resistance zones.

OI Gainers

A screener view ranking F&O contracts by the largest increase in open interest over a chosen period, highlighting where new positions are...

OI Losers

A screener view ranking F&O contracts by the largest decrease in open interest, highlighting where existing positions are being closed out fastest.

OI Wall

A strike price where open interest is unusually concentrated, often acting as a psychological support or resistance level for the underlying.

OI-based PCR

The Put-Call Ratio calculated from outstanding open interest in puts versus calls, reflecting positions built up over time rather than a single...

Open Interest

The total number of outstanding option or futures contracts that have not yet been settled or closed.

Option Chain

A table listing all available call and put options for a security, organized by strike price and expiry.

Option Chain Replay

A playback tool that reconstructs how an entire option chain's prices, open interest, and Greeks changed through a past trading session.

Option Greeks

A set of risk measures - delta, gamma, theta, vega, and rho - used to describe how an option's price reacts to...

Option Pinning

The tendency for an underlying's price to settle very close to a strike carrying unusually heavy open interest at expiry, reinforced by...

OTM PCR

A Put-Call Ratio calculated using only out-of-the-money strikes, isolating pure directional and hedging bets from at-the-money and in-the-money activity.
View all "O" terms

You request, we deliver. The only platform shaped by an open trader community.

Got a question or a feature you wish existed? Drop it in our Telegram community, the Stolo team is right there reading every message.

Stolo Telegram Channel
Join our Telegram Channel
for more updates
Subscribe to YouTube Channel