What are Out of The Money Options? "Out of the money" (OTM) is an expression used to describe an option contract that only contains extrinsic value. These options will have a delta of less than 0.5. An OTM call option will have a strike price that is higher than the market price of the underlying asset. Alternatively, an OTM put option has a strike price that is lower than the market price of the underlying asset. OTM options may be contrasted with in-the-money (ITM) options. Interested in learning more?