What is Out of the Money (OTM) options?

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• Can I buy and sell Far OTM Options in FYERS?

  Yes, We provide you a wider strike price range for options trading and you can Buy/Sell Far Out of The Money (OTM) Options Contracts. Options Buying Index Options – You can Buy OTM Options up to a range of 20% from the LTP. Stock Options – You can ...

• What is Out of The Money (OTM) Call Option?

  A call option is said to be OTM when the underlying security’s current market price is lesser than the strike price of the contract.

• What is Out of the Money (OTM) Put Option?

  A put option is said to be OTM when the underlying security’s current market price is greater than the strike price of the contract.

• What does In The Money (ITM) options mean?

  An option is said to be In-The-Money if upon exercising it, the option buyer gets positive cash flow.

• What is the impact of moneyness on options premium?

  It is widely seen that ITM options command the highest premium, followed by ATM options and lastly by OTM options.