Out of the Money
1. For a call, when an option's strike price is higher than the market price of the underlying asset.
2. For a put, when the strike price is below the market price of the underlying asset.
Investopedia Commentary
Basically, an option that would be worthless if it expired today.
Related Links
Options Basics Tutorial
Alternatives to Closing Below Intrinsic Value
See also: At the Money, Call Option, Deep in the Money, In the Money, Option, Put Option, Strike Price
Also spelled: out-of-the-money, out of the money