What does it mean when a Stock Option is Out of The Money (OTM)?

What does it mean when a Stock Option is Out of The Money (OTM)?
[What does it mean when a Stock Option is Out of The Money (OTM)?] Hello and welcome to our latest short [What does it mean when a Stock Option is Out of The Money (OTM)?] video ๐ŸŽฅ where we will be discussing a common question around the stock market - [What does it mean when a stock option is out of the money?] Options are a great way to potentially profit from the stock market without actually owning the underlying asset. But when an option is labeled as "out of the money" or OTM, it can be confusing for many investors. But fear not, in this video we will explain this concept in a simple and straightforward way. First, let's define what an option is. An option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price within a certain time frame. So, what does it mean when an option is out of the money? Essentially, it means that the option's strike price is not favorable to the current market price of the underlying asset. The strike price is the price at which the option can be exercised, and if the market price is not in line with this strike price, the option is considered out of the money. ๐Ÿ”ด Please also Join us in the BeachBum Trading Community by Subscribing to the BeachBum Trading YouTube Channel at ๐Ÿ‘‰ https://www.youtube.com/c/BeachBumTrading?sub_confirmation=1 and Please Click the Bell Icon ๐Ÿ”” so that You are Notified and Never Miss an Episode of BeachBum Trading. All for FREE. ๐ŸŽฅ RELATED VIDEOS ๐Ÿ“Ÿ ๐ŸŽฅ What does it mean when a Stock Option is In The Money (ITM)? ๐Ÿ‘‰ https://youtube.com/shorts/TYD3z1gwjFY ๐ŸŽฅ What does it mean when a Stock Option is At The Money (ATM)? ๐Ÿ‘‰ https://youtube.com/shorts/mh5y8lu5bWE ๐ŸŽฅ Option Strategies For Beginners With Examples | Episode #1 ๐Ÿ‘‰ https://youtu.be/QSjdlU5ah8U ๐ŸŽฅ Option Strategies For Beginners With Examples | Episode #21 | Covered Calls #7 ๐Ÿ‘‰ https://youtu.be/DeoGYNOgnWo ๐ŸŽฅ How To Sell Covered Call Options in Webull ๐Ÿ‘‰ https://youtu.be/2nJQPZPgr90 ๐ŸŽฅ How To Sell Covered Call Options in E*TRADE ๐Ÿ‘‰ https://youtu.be/8_tUGOYc35I ๐ŸŽฅ How To Chart Options in the Webull Desktop Trading Platform | How To Trade Options in Webull ๐Ÿ‘‰ https://youtu.be/x1vaTNlktgs ๐ŸŽฅ You may / Please see ๐Ÿ‘€ All of the BeachBum Trading videos in our [Option Strategies For Beginners With Examples] series, All for FREE, at ๐Ÿ‘‰ https://www.youtube.com/results?search_query=%22Option+Strategies+For+Beginners+With+Examples%22 ๐ŸŽฅ You may / Please see ๐Ÿ‘€ All of the BeachBum Trading Options related videos in the Options YouTube Playlist, All for FREE ๐Ÿ‘‰ https://www.youtube.com/playlist?list=PLH_4RiO370FO74wfhoOft4ZzorM9CR6NX ๐Ÿ‘‰ Please find and Watch ๐Ÿ‘€ All of the BeachBum Trading Shorts ๐ŸŽฅ videos, All for FREE, at ๐Ÿ‘‰ https://www.youtube.com/@BeachBumTrading/shorts ๐Ÿงฐ TRADING TOOLS ๐Ÿงฐ ๐Ÿ› ๏ธ Webull โ€“ Get FREE stocks with Webull ๐Ÿ‘‰ https://bit.ly/3jKfvw5 ๐Ÿ› ๏ธ E*TRADE โ€“ Use our link and we both get rewarded! ๐Ÿ‘‰ https://bit.ly/3zP6rvB ๐Ÿ› ๏ธ FinViz ๐Ÿ‘‰ https://bit.ly/3h7r8M3 ๐Ÿ› ๏ธ ChartMill ๐Ÿ‘‰ https://bit.ly/3By9g4X ๐Ÿ› ๏ธ TD Ameritrade thinkorswimยฎ [TOS] ๐Ÿ‘‰ https://ift.tt/GLyIAcm ๐Ÿ› ๏ธ Seeking Alpha ๐Ÿ‘‰ https://ift.tt/pbkvfFE ๐Ÿ› ๏ธ Benzinga Pro ๐Ÿ‘‰ https://ift.tt/eKQ5m7n ๐Ÿ“ˆ TRADING PLATFORMS ๐Ÿ“ˆ โœ… Webull โ€“ Get FREE stocks with Webull ๐Ÿ‘‰ https://bit.ly/3jKfvw5 โœ… E*TRADE โ€“ Use our link and we both get rewarded! ๐Ÿ‘‰ https://bit.ly/3zP6rvB โœ… Public Investing ๐Ÿ‘‰ https://bit.ly/3M5eACK (Referral Code: MichaelSDeVries) #OutOfTheMoney #options #optionstrading ๐Ÿ‘€ BeachBum Trading on Social Media ๐Ÿ‘€ ๐ŸŒ To See ๐Ÿ‘€ any Daily Changes to our Watch List(s), "Real Time Alerts" ๐Ÿ“ฃ of our Buys, aggregated News on our current Positions, etc., โ€ฆ Please watch / keep an eye ๐Ÿ‘€ on the Comments section of this video, below, and/or โ€ฆ Please also Follow BeachBum Trading on: ๐Ÿ‘‰ Patreon at: https://ift.tt/wgGS0yK ๐Ÿ‘‰ Discord at: https://ift.tt/4mO3tG6 ๐Ÿ‘‰ Twitter at: https://twitter.com/BeachBmTrading ๐Ÿ‘‰ Pinterest at: https://ift.tt/CD5K3sl ๐Ÿ‘‰ Facebook Group at: https://ift.tt/4sxSa8P ๐Ÿ‘‰ Facebook Page at: https://ift.tt/qNp23H0 ๐Ÿ‘‰ Instagram at: https://ift.tt/i3DMsEU ๐Ÿ‘‰ Reddit at: https://ift.tt/rSbyMcQ ๐Ÿ– Please also Join Us in the [BeachBum Trading] Community [Discord Server] ๐ŸŽฎ, for FREE, at ๐Ÿ‘‰ https://ift.tt/4mO3tG6 ๐Ÿก Please also Visit the ๐Ÿ– [BeachBum Trading] [Home Page] at ๐Ÿ‘‰ https://ift.tt/x47uTp2 ๐Ÿ™ Please Help us be able to continue to produce frequent quality content to help You Learn How to Trade so that You may Achieve the Financial Freedom You Want and Deserve to be able live the BeachBum lifestyle and/or any kind of life that You would like to live! and get Access to our New BeachBum Trading Community Discord Server Now by Supporting BeachBum Trading via Patreon at ๐Ÿ‘‰ https://ift.tt/wgGS0yK
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