Skip to main content
Learn

Define the Conditions for a Put Option to Be Considered Out-The-Money (OTM)

Underlying Price > Strike Price for a Put option to be Out-The-Money.
Greeks.Live02.11.25

Define the Conditions for a Put Option to Be Considered Out-The-Money (OTM).

A Put option is OTM when the current price of the underlying asset is greater than the option's strike price. The holder has the right to sell at the strike price, but since the market price is higher, exercising would result in a loss compared to selling in the open market.

Therefore, its intrinsic value is zero.

What Does It Mean for an Option to Be “Out-of-the-Money” (OTM)?
Define the Term “Out-of-the-Money” (OTM) for a Call Option
What Does It Mean for a Put Option to Be “Out-of-the-Money”?
Define the Conditions for a Call Option to Be Considered In-The-Money (ITM)

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.