In this one we dive into how to buy and sell contracts! In the next part I'll be going over the Greeks and how they influence what contracts you should buy, so stay tuned!
Let's say the price is currently 220. You can buy a 225 OTM or 215 ITM. It's called In the money because it already passed 215 therefore it has value which is why it cost more & has less risk than 225 strike because it hasn't been reached yet. The delta for 215 is 75. 75 for every dollar it goes up but also 75 for every dollar it goes down against you if it's a call. Ouch! Your entry better be good when buying ITM because if it rolls back against you it can be painful. I recommend ATM which is a middle btwn ITM & OTM.
In this one we dive into how to buy and sell contracts! In the next part I'll be going over the Greeks and how they influence what contracts you should buy, so stay tuned!
Yep
I don't understand why you'd call for 215 when the price is higher than that. Aren't calls supposed to go up?
when you buy way in the money. the contract has intrinsic value. so your break even is hella low. that means you can get into profit quicker.
Let's say the price is currently 220. You can buy a 225 OTM or 215 ITM. It's called In the money because it already passed 215 therefore it has value which is why it cost more & has less risk than 225 strike because it hasn't been reached yet. The delta for 215 is 75. 75 for every dollar it goes up but also 75 for every dollar it goes down against you if it's a call. Ouch! Your entry better be good when buying ITM because if it rolls back against you it can be painful. I recommend ATM which is a middle btwn ITM & OTM.
Broker name please???
Think or swim
Swim or drown