Options Glossary

Glossary: Undervalued

Last Updated: July 12, 2015

Glossary

Undervalued

What Does Undervalued Mean in Options Trading?

When the current market price of a financial instrument is below it's fair value as determined by accepted mathematical model. Sometimes traders refer to an instrument as undervalued to express their belief that future price will appreciate.

Related Options Trading Terms

homeusercrossmenuarrow-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram