We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Out Of The Money

Definition:

When a stock option has a strike price above the value of the stock.

Yeah... not good.

Example

A stock option has a strike price of $88; then the CFO commits fraud. The stock is now at $5. The option is $83 out of the money.

You probably don't want to buy—just a guess.