Common comparison error
Automatic settlement under Out of the money OTM is not a manual early-exercise right and should not be inferred from Expiry only observation.
GlossaryPricing & settlement
Out-of-the-money (OTM)
A contract state in which the stated settlement condition has not been met.
Practical use
How to verify Out-of-the-money (OTM)
Read Out-of-the-money (OTM) together with In-the-money (ITM), Expiry-only observation, Settlement price. The comparison must preserve the exact rule, value, state, and evidence described below.
A neutral example
The platform's Out of the money OTM label resembles In the money ITM, but archived specifications reveal different observation and settlement rules. What makes this an example of Out of the money OTM is that the accepted settlement condition has not been met regardless of how close price finished.
Evidence path
Where to verify Out-of-the-money (OTM)
Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.