Choosing the appropriate strike price on an option trade is critical to success. This is true because options traders have to get both timing and direction correct at the same time.
Recently, a follower is considering buying ~ 2-week, 6% “in-the-money” call options going into Costco earnings. Whether one chooses in, at, or out of the money options can impact one’s probability of profit, but it also can change the relationship of risk vs. reward. In this video, Mike discusses how 3 different trades would have done historically going into earnings.
Photo by Andrea Piacquadio from Pexels
