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Hello, I'm wondering if this trade makes sense, given that I think it'll move, but not sure by how much. Earnings are coming out shortly, I'm bullish, but unsure if they can meet earnings. Current price is >31. What I'm thinking, is buy a JUL ITM 28 call, and profit from the downside...

I'm probably way off, but IMO, I like DITM options vs. the underlying. If I buy a contract with a high enough delta, i can participate in (almost) the same gains as I would if I bought but shares themselves, for significantly less risk. Yes, my 100% investment goes to 0, but had I...

awesome, thanks for the advice!

thank you all for your responses, and thanks Mark, that's exactly what I wanted to know.

I was wondering about the mechanics of selling to close. How does this work if i'm long the call or put? can I be stuck with a long call or put? is the writer purchasing back the contract(s)? or is someone else picking up the long position?

+1 IMO almost like having your cake and eating it too.

as someone who is learning myself, I really really enjoyed Options made Easy by Guy Cohen Are you going to learn all of this from one book? No But I've learned a lot from it. CBOE also has their courses for free (sponsored by optionxpress)

I suppose it depends what kind of shares. That's too much of a blanket statement IMO.

Thanks again for the advice.

wow this is great advice, really appreciate it. E-mail alert, never thought of that. Luckily I have access to a computer, but with my broker (Canadian) I have to phone in my order with spreads. (I know) I'm looking at TOS Canada right now...

okay thanks, so I`m not crazy... I`ll do the above recommended reading on this as well. thanks

you sold the 100, and purchased the 105 you may get exercised the 100`s, then it would be up to you if you decide to exercise the 105`s you can close the position, then you`d pay the difference. But I believe you`re at risk at expiration, since you normally won`t know if you`ve been...

Is it better to be long deep ITM options over OTM options when you expect the price to move but not significantly? I understand ROI is lower & risk is higher, but my understanding is break-evens are lower as well, and you would be fighting against time decay. Is there a flaw in this strategy?

Thanks Mark for your advice, truly appreciated.

Hello, New to the forum, and fairly new to options. Wanted to share my 2nd trade It was "successful", but my short put spreads were (I believe) undervalued. So I sold 5 MOS 35 puts and bought 5 MOS 30 puts for a net credit of 0.65 on Feb 23, put my order in before the market opened...