An option [call option or put option] is „out of the money“ if the price of the underlying on the spot market is below [above in the case of the put option] the strike price (an option that has no intrinsic value, i.e., all of its value consists of time value. A call option is out of the money if the price of the underlying is below its strike price. A put option is out of the money if the price of the underlying is above its strike price). In this case, it is not worthwhile for the option contract holder to exercise the option. – See At the money, Basis, falling, In the money, Option, Commodity futures contract, Underwater.

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