To follow up from my post yesterday about Deep ITM calls are actually better A $0.60 OTM call feels cheap. A $6.00 ITM call feels expensive. Flip it. The $0.60 call has $0 of real value in it. You paid $0.60 for time and volatility. That’s it. The $6.00 call might have $5 already in the money. You only paid $1 for time. Cheap at the register isn’t the same as cheap exposure. Original post in case you missed it https://link.blossomsocial.com/7uYa/bbix9xci
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2 Comments
Gerald @aetos · 6d
Yup, gotta ignore the dollar amount and go for the best probability of the best outcome. I personally hate naked options, but they sure have a place.
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