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Like ATM, an OTM option doesn't have any any intrinsic because if exercised, just generates a loss to you as picking owner. A person still cannot understand it, imagine i hear you ask the option seller to send you stock at $30 (call option strike price) while stock is currently priced at $20. Why bother? Go in the open market and purchase it at $20. As a model pretend fix bought an uptrending stock for twenty-one mu88 .57. You want to obtain out at 24.00 a person feel if it goes below approximately 20.49 you want to lessen you
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