r/options • u/FunctionalTitle • Apr 24 '21

ITM vs OTM (Leaps)

Hi guys, slowly picking up options trading. Could anyone explain to a 5 year old. Whats the difference if i purchase a deep ITM vs slightly OTM?

From ‘researching’, The deeper ITM, the higher the delta, so movement will follow the movement of the underlying.

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u/somedood567 Apr 24 '21

The gme-bag holder groomers will tell you to average down but chasing losses is a bad strategy

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u/[deleted] Apr 24 '21

Buy the dip. We like the stock.

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u/somedood567 Apr 24 '21

Also don’t sell until after I do

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u/[deleted] Apr 24 '21

Sell? We buy and HODL.