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Deep-out-of-the-money
Said of an option whose exercise price at a specific point in time is so far above the market price of the underlying in the case of a call option, or so far below the market price of the underlying in the case of a put option, that the option is unlikely to become in the money before its maturity.
The premium to be paid on the purchase of a deep-out-of-the-money option is low since the intrinsic value of the option is nil. The call option gives the holder the right to purchase the underlying at a price well above market value; the put option gives the holder the right to sell the underlying at a price considerably below market value. It is therefore unlikely that a deep-out-of-the-money option can be exercised profitably prior to maturity.