What Is the Term for an Option That Has No Intrinsic Value?
An option with no intrinsic value is either Out-of-The-Money (OTM) or At-The-Money (ATM). Specifically, an OTM option is one where exercising it would result in a loss.
For a call, the strike is above the market price; for a put, the strike is below the market price. OTM options only have time value.
