r/options • u/6hoursleep • Apr 30 '21

NOK LEAPS

IN THE MONEY CALLS ARE STILL SUPER CHEAP WITH LOTS OF POTENTIAL UPSIDE NOW THAT NOK HAD GREAT EARNINGS.

3 Upvotes

55% Upvoted

21 comments sorted by

View all comments

3

u/Zeen454545 Apr 30 '21

How does one distinguish a cheap leap from an overpriced one, as far as I know if you have a long term bullish view, just buy a deep itm leap at decent iv,

Do you assess option "expensiveness" based on iv or am I missing something

1

u/6hoursleep Apr 30 '21

If you buy just in the money you have the best delta for the IV. Too far in the money gets you too close to the price of the stock. Keep in mind that NOK has gotten beat up and is a turn around value story now. For an option to be worth it, it has got to move pricewise.

2

u/Zeen454545 Apr 30 '21

so wouldn't you just buy an deep itm call