"Out of the money" (OTM) is an expression used to describe an option contract that only contains an extrinsic value. These options will have a delta of less than 50.0. An OTM call option will have a strike price that is higher than the market price of the underlying asset.
Alternatively, an OTM put option has a strike price that is lower than the market price of the underlying asset.
OTM options have less extrinsic (time) value than ITM options, which in turn makes them more desirable to traders with smaller amounts of capital. OTM options are more commonly traded for strategies such as covered calls or protective puts.