out-of-the-money optionnoun [ C ]
ukusSTOCK MARKET an option (= right to buy or sell shares, etc.) which has no value because the shares, etc. can be only be bought for above their present price, or sold for less than their present price:
The best time to buy an out-of-the-money option is when you expect market volatility to increase.
Compare
at-the-money option
in-the-money option