Out Of The Money

When an investor holds an option to buy or sell and underlying asset, the option is said to be 'out of the money' if by exercising the option the investor would make an overall loss. If the investor could exercise the option without overall loss then the option will be either at 'break even' or 'in the money'.

An option which is currently 'out of the money' is usually cheaper to buy than one 'in the money'. An 'out of the money' option will only be worthess if it is still out of the money on the option expiry date.

What to do if you need more help

If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.

We hope you found this information useful.

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