Out of the money binary option

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There are two possible outcomes when binaries can be Out of the money

1)Binary Call option

Binary call option will be out of the money in case the price during expiry is lower then the strike price, the price the option was purchased. Let's say you bought Apple Binary call option at a price of $99, at the end of the hour, Apple price plunged below the $99 level. In that situation the Binary call option expired Out of the money paying nothing or 15% of your intial investment according to the options predetermined payout.

2)Binary Put option

Binary put option will be out of the money in case the price during expiry is higher then the strike price, the price the option was purchased. Let's say you bought Apple Binary call option at a price of $99, at the end of the hour, Apple price climbed above the the $99 level. In that situation the Binary call option expired Out of the money paying nothing or 15% of your initial investment according to the options predetermined payout


Out the money is one of the three possible condition in options trading other than: At the money (ATM) and In the money (ITM)

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