What Is Out of the Money (OTM)? “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 0.50. An OTM call option will have a strike price that is higher than the market price of the underlying
What Is an Output Gap? The term output gap refers to the difference between the actual output of an economy and the maximum potential output of an economy expressed as a percentage of gross domestic product (GDP). A country’s output gap may be either positive or negative. A negative output gap suggests that actual economic output
What Is an Outright Option? An outright option is an option that is bought or sold individually. This option is not part of a spread trade or other types of options strategy where multiple different options are purchased. Key Takeaways An outright option is one that is purchased individually and is not part of a
What is an Outside Director An outside director is a member of a company’s board of directors who is not an employee or stakeholder in the company. Outside directors are paid an annual retainer fee in the form of cash, benefits and/or stock options. Corporate governance standards require public companies to have a certain number
What Are Outside Sales? Outside sales refer to the sales of products or services by sales personnel that physically go out into the field to meet with prospective customers. Outside sales professionals tend to work autonomously outside of a formal office setting or a formal team environment. They often travel to meet customers face-to-face, as
What Is Outsourcing? Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company’s own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As such, it can affect a wide range of jobs, ranging
What Is an Outstanding Check? An outstanding check is a check payment that is written by someone but has not been cashed or deposited by the payee. The payor is the entity who writes the check, while the payee is the person or institution to whom it is written. An outstanding check also refers to
What Are Shares Outstanding? Shares outstanding refer to a company’s stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. Outstanding shares are shown on a company’s balance sheet under the heading “Capital Stock.” The number of outstanding shares is used in
What Is an Out Trade? An out trade is a trade that cannot be placed because it was received by an exchange containing conflicting information. The associated clearinghouse cannot settle the trade because the data submitted by parties on both sides of the transaction is inconsistent or contradictory. Key Takeaways An out trade is a trade that can’t
What Is an Outward Direct Investment (ODI)? An outward direct investment (ODI) is a business strategy in which a domestic firm expands its operations to a foreign country. ODI can take many different forms depending on the company. For example, some companies will make a green field investment, which is when a parent company creates
