Jan 06, 2020 · This can also be used to get an idea of what the market expects from an asset’s price. Furthermore, this is the probability to look at when selling options. When selling options, you want the sold options to lose some or ideally all of their value and the probability of OTM shows the probability of exactly this happening.
If a call option has a strike price above the current price or a put option has a strike price below the current price, the option has no intrinsic value. This is called an out-of-the-money option. If the owner of an out-of-the-money option exercises it, he will either pay more when buying the stock or make less when selling it.