The elasticity of an option where its value doesn’t respond to changes in the underlying price. As such, it delta is one. For example, a call option with a strike price of 100, while its underlying is currently trading at 70, will have its delta equal to or approaching zero. Similarly, this situation may be observed when a put option, for example, has a strike price of 100, while its underlying is currently trading at 130. In both cases, the option’s elasticity is said to be deep out of the money.

It is sometimes known by its abbreviated form: DOTM elasticity.