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The Options seem Deep in the Money. Is that usual?

Solution

Options are purchased for their value based on Deltas (how much they move based on a dollar's change in the stock value.) We always buy with a delta of around a .67 or as close as possible because this is the sweet spot in the options acceleration curve.

We typically buy options 4-6 months out, that are deep in the money.

 
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Article details
Article ID: 17
Category: ETF Tipping Point
Date added: 2013-04-01 15:45:17
Views: 1032
Rating (Votes): Article rated 3.8/5.0 (34)

 
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