Deep out of the money

Similar financial terms

Deep in the money
A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price. Often substantially below is defined as more than one strike price below (for calls)/above (for puts) the current value of the underlying security.

Up-and-Out Option
An option that ceases to exist when the price of the underlying asset increases to a set level.

Out-of-the-money
An option that has a negative value if exercised immediately. For example, a call when the exercise price is above the current price of the underlying asset, or a put when the exercise price is below the current price of the underlying asset.

Out-of-the-money options are usually not exercised.

Breakout
In technical analysis , the movement of a stock's market value above resistance level or below support level

Dividend payout ratio
A ratio showing the percentage of net profits paid out in dividends on common stock, after reducing net profits by the amount of dividends paid on preferred stock.

Workout period
Realignment period of a temporary misaligned yield relationship that sometimes occurs in fixed income markets.

Workout
Informal arrangement between borrowers and creditors.

Without recourse
Without the lender having any right to seek payment or seize assets in the event of default from anyone other than the party (such as a special-purpose entity) specified in the debt contract.

Without
If 50 were bid in the market and there was no offer, the quote would be "50 bid without." The expression "without" indicates a one-way market.

Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base-line increases in earnings occur.

Take-out
A cash surplus generated by the sale of one block of securities and the purchase of another, e.g. selling a block of bonds at 99 and buying another block at 95. Also, a bid made to a seller of a security that is designed (and generally agreed) to take him out of the market.

Stockout
Running out of inventory.

Priced out
The market has already incorporated information, such as a low dividend, into the price of a stock.

Payout ratio
Generally, the proportion of earnings paid out to the common stockholders as cash dividends. More specifically, the firm's cash dividend divided by the firm's earnings in the same reporting period.

Outstanding shares
Shares that are currently owned by investors.

Outstanding share capital
Issued share capital less the par value of shares that are held in the company's treasury.

Outsourcing
The practice of purchasing a significant percentage of intermediate components from outside suppliers.

Outright rate
Actual forward rate expressed in dollars per currency unit, or vice versa.

Out-of-the-money option
A call option is out-of-the-money if the strike price is greater than the market price of the underlying security. A put option is out-of-the-money if the strike price is less than the market price of the underlying security.

Open outcry
The method of trading used at futures exchanges, typically involving calling out the specific details of a buy or sell order, so that the information is available to all traders.

Netting out
To get or bring in as a net; to clear as profit.

Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.

Lock-out
With PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With multifamily loans, the period of time during which prepayment is prohibited.

LIFO (Last-in-first-out)
The last-in-first-out inventory valuation methodology. A method of valuing inventory that uses the cost of the most recent item in inventory first.

Leveraged buyout (LBO)
A transaction used for taking a public corporation private financed through the use of debt funds: bank loans and bonds. Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or junk bonds. Investors can participate in an LBO through either the purchase of the debt (i.e., purchase of the bonds or participation in the bank loan) or the purchase of equity through an LBO fund ...

Last-In-First-Out (LIFO)
A method of valuing inventory that uses the cost of the most recent item in inventory first.

Knock-out option
An option with a built in mechanism to expire worthless should a specified price level be exceeded.

Carve out a niche
Find a special position to monopolize

Genie is out of the bottle
Something that can never be changed back

Washout
When investors get heavily diluted by a susbsequent round of investment especially when the investment is a down round. Also known as a Cramdown.

Borrower fallout
In the mortgage pipeline, the risk that prospective borrowers of loans committed to be closed will elect to withdraw from the contract.

Buyout
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is done with borrowed money.

Cashout
Refers to a situation where a firm runs out of cash and cannot readily sell marketable securities.

Customary payout ratios
A range of payout ratios that is typical based on an analysis of comparable firms.

Debt outstanding subject to limitation
Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.

Open Outcry
Method of public auction required to make bids and offers in the trading pits or rings of commodity exchanges.

In-the-money
An option that has a positive value if exercised immediately. For example, a call when the exercise price is below the current price of the underlying asset, or a put when the exercise price is above the current price of the underlying asset.

At-the-money
An option that has zero value if exercised immediately. For example, a call or put when the exercise price is equal to the current price of the underlying asset.

Near money
A domestic dollar deposit is money within the context of the US economy while tue euro-dollar deposit is near money held y a bank branch in an offshore money market, such as Luxembourg. So the eurodollar market is a place where banks outside the US accept (borrow from customers) and place (lend) dollar deposits.

Transaction demand (for money)
The need to accommodate a firm's expected cash transactions.

Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar received today can earn interest up until the time the future dollar is received.

Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.

Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a buffer stock of cash.

New money
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of those maturing.

Money supply
M1-A: Currency plus demand deposits
M1-B: M1-A plus other checkable deposits
M2: M1-B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits.
M3: M-2 plus large time deposits and term repos.
L: M-3 plus other liquid assets.

Money rate of return
Annual money return as a percentage of asset value.

Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and the firm contributes at the same or a different rate. Also called and individual account plan.

Money market notes
Publicly traded issues that may be collateralized by mortgages and MBSs.

Money market hedge
The use of borrowing and lending transactions in foreign currencies to lock in the home currency value of a foreign currency transaction.

Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances, commercial paper, repurchase agreements and government bills. The net asset value per share is maintained at $1. 00. Such funds are not federally insured, although the portfolio may consist of guaranteed securities and/or the fund may have private insurance protection.

Money market demand account
An account that pays interest based on short-term interest rates.

Money market
Money markets are for borrowing and lending money for three years or less. The securities in a money market can be U.S.government bonds, treasury bills and commercial paper from banks and companies.

Money center banks
Banks that raise most of their funds from the domestic and international money markets , relying less on depositors for funds.

Money base
Composed of currency and coins outside the banking system plus liabilities to the deposit money banks.

Call money rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service charge.

Hush money
Bribe; payment to keep someone quiet

Tight money
When a restricted money supply makes credit difficult to secure. The antithesis of tight money is easy money.

Dear money
UK term for tight money.

Earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.