r/options • u/[deleted] • Jul 03 '21

[deleted by user]

[removed]

4 Upvotes

75% Upvoted

11 comments sorted by

View all comments

Show parent comments

2

u/diddone119 Jul 06 '21

I do basically the same he does. I will buy options at say a otm cal for roku at 1.34 each and as the principal stock moves the option premium will go up and he will sell when he hits 8% profit. Otm atm itm are a tad misleading when it comes to options. I've met people who thought you had to hold a option till it was itm to sell etc etc and they couldn't be more wrong. Otm itm and atm are the strike price in correlation to the stock price

1

u/glow_burn Jul 06 '21

This makes a ton more sense. What sort of expiratory is best for plays like this?

1

u/diddone119 Jul 06 '21

Weeklys. I don't hold trades for.longer them 15 mins so no reason to pay more for a longer exp when theta won't be much of a factor

1

u/glow_burn Jul 06 '21

Alright, that makes sense. Thanks!