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What Is the Term for an Option That Expires Worthless?

An option that expires worthless is OTM at expiration.
Greeks.Live22.11.25

What Is the Term for an Option That Expires Worthless?

The term for an option that expires worthless is "out-of-the-money" (OTM) at expiration. This means the option's intrinsic value is zero, and its time value has fully decayed to zero, resulting in a loss of the entire premium for the buyer.

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