Subset of an option series that has no intrinsic value and expires worthless.
An out-of-the-money option is one whose strike price is unfavourable in comparison to the current price of the underlying. This means when the strike price of a call is greater than the price of the underlying, or the strike price of a put is less than the price of the underlying. An out-of-the-money option has no intrinsic value, only time value.
An option which has no intrinsic value. For calls, an option which has an exercise price above the market price of the underlying future. For puts, an option which has an exercise price below the futures price. The opposite is in-the-money.