Out of the money
The state in which exercising the option right now would make no sense.
How to read the number
The whole premium is payment for time. Such an option is cheap and moves sharply, because the distance from nothing to intrinsic value is short.
When the metric lies
The low price is deceptive: most often the option expires worthless, and that is precisely the arithmetic the seller is counting on.
Also known as: OTM option