Out-of-the-Money (OTM)
Out-of-the-Money (OTM) refers to an option that currently has no intrinsic value because the market price of
Out-of-the-Money (OTM) refers to an option that currently has no intrinsic value because the market price of
Bid Price refers to the highest price that a buyer is willing to pay for an option
Bid-Ask Spread refers to the difference between the highest price a buyer is willing to pay (bid
Ask Price refers to the lowest price at which a seller is willing to sell an option
1. Call Option (CE) Call Option gives the buyer the right, but not the obligation, to purchase