What Is the Term for a Put Option That Is “Out of the Money”?

A put option is "out of the money" (OTM) when the strike price is lower than the current market price of the underlying cryptocurrency. In this scenario, exercising the option to sell at the strike price would be less favorable than selling the crypto directly on the market.

An OTM put option has no intrinsic value, and its premium is purely extrinsic value.