Frequently Asked Questions

Out-of-The-Money Option (OTM)
A term used to describe an [option] that has no [intrinsicvalue|intrinsic value], i.e., all of its [premium] consists of [timevalue|time value]. A [call|call option] is out of the money if the stock price is below its [strike|strike price]. A [put|put option] is out of the money if the stock price is above its strike price.

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This data is provided for information purposes only and should not be used or construed as an indicator of future performance. The information is not a solicitation, an offer to buy or sell, or a recommendation for any security. OptionsBuddy.com does not guarantee the accuracy or completeness of the information, or the suitability or potential value of any particular investment. Request a prospectus before investing. The term 'play' refers to placing a trade order. Returns on Investment (ROI) are based upon the option bid and the stock last. OTM ROI's do not take into account commission costs or loss of profit from options being excersized.
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