Define “Out-of-the-Money” (OTM) for a Put Option.
A Put Option is "Out-of-the-Money" (OTM) when the current market price of the underlying asset is higher than the option's strike price. In this scenario, the right to sell at the strike price is less valuable than selling at the current, higher market price.
An OTM option has no intrinsic value; its premium consists entirely of time value and implied volatility.
