Trading Options: In The Money vs. Out The Money | What's Better? (ITM Vs. OTM)

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  • Опубліковано 16 лис 2024

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  • @TCTrading
    @TCTrading  3 роки тому +1

    🔥 LIKE and SHARE this video to let me know you want more videos like this.🔥
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  • @TruckerTraderSam
    @TruckerTraderSam Рік тому +3

    Clearest video ever on UA-cam ❤good job buddy thank you

  • @Chawanya_Singer
    @Chawanya_Singer 4 місяці тому

    Great Video 👍🏾 I’ve been looking for this type of video for a while. Most option videos I’ve seen talks about making these kinds of gains by selling options contracts or using iron condors and straddles, etc. So thank you so much for the ITM OTM advice simplicity on long calls or puts 🙏🏽

  • @sheniquasimon6530
    @sheniquasimon6530 2 роки тому +4

    Thank you for this video. I have a much better understanding of ITM and OTM and when to use them.

  • @syazone6782
    @syazone6782 2 роки тому +2

    simple and straight forward learning channel, easy to digest and implement, respect from malaysia ♥️🇲🇾 tq, subs!

  • @nfriend9783
    @nfriend9783 10 місяців тому +1

    Easy understand.. helpful video...can u explain sell put in the money.. thanks

  • @mubarak3457
    @mubarak3457 Рік тому +3

    👍love it !!! I only believe in options

  • @bestmlmcompanies
    @bestmlmcompanies 7 місяців тому

    great video man! Here's the thing: I think TSLA is going to $80 in 6 months. Would it be a lottery ticket win if the market crashes in 6 months along with TSLA? Could I do a spread of many puts on TSLA to make even more money, like 80 puts, 85 puts, 90 puts etc?

  • @bettyangel7009
    @bettyangel7009 Рік тому +1

    Very useful for a beginner like me.Thank
    S.

  • @lukeolkowski9476
    @lukeolkowski9476 Рік тому +2

    great video, quick question so why would they have calls for below the striking price since calls are betting up?

    • @TCTrading
      @TCTrading  Рік тому +1

      These are considered "less risky" and more so a way to trade with more leverage than shares.

    • @lukeolkowski9476
      @lukeolkowski9476 Рік тому

      @@TCTrading didnt answer my question but whatever

  • @SRhiannonSkeen
    @SRhiannonSkeen 18 днів тому

    Qestion. Does ITM and OTM matter as much If my goal in trading is to only hang on to the contract(s) for 5-15 mins? I'm a options scalper looking to ride the up and down waves in a short time and cash out when profit is acceptable to me. How does ITM and OTM factor into this? so for example on your video apple is trading at $154. and I'm ok with with buying 10 or so contracts at $160 or higher call strike price that is way out of the money. My thinking is that Im certain apple will not get here but I'm only planning to hold these contracts for 15 mins max. What's your thoughts on how ITM and OTM factor into quick trade scenarios?

  • @chiz_o3794
    @chiz_o3794 3 роки тому +2

    Would it be more beneficial to use ITM or OTM for short term plays? Ex: 30 days or less

    • @TCTrading
      @TCTrading  3 роки тому +3

      I think it depends on the move you are looking for an how far ITM/OTM. The issue is that this period of time will have the largest time decay so at least for me I would like to minimize the decay (look for lower theta values) and ITM for me at least so I am playing with more intrinsic value in the move. That said, if looking for short term moves the most money will be made if you can be even just semi accurate on the timeframe for the move to be made and OTM options will be the bigger winners. Really comes down to risk tolerance and your style. If I was certain of a TSLA $800+ breakout in October lets say, I may buy some $775 calls and then maybe a smaller $ amount of $825 as well. This way I have a nice ITM position but if it goes nuts I also have a mimi lottery ticket in a sense in the $825s.

    • @chiz_o3794
      @chiz_o3794 3 роки тому

      @@TCTrading Thank you so much! That actually answered alot! So the strategy I'm looking to implement is a short term swing trade strategy strategy. As in buy today sell tomorrow. I was actually successful using this strategy to grow my small account to get past the $25k PDT mark. I'm hoping to utilize this same strategy and optimize it for options trading. At the moment I'm selling calls and puts with a 30 day expiration timeframe. Has been working exceptionally well in paper trading. Just need to figure out if I need to sell OTM or ITM for better profits. Thank you so much, and if you have any feedback on my current strategy or ways I can optimize it I would greatly appreciate it... You're definitely getting a like and subscribe from me bro!👍

  • @ShuaibSultan-h2c
    @ShuaibSultan-h2c 4 місяці тому

    Now, I got it! Thanks!

  • @joegreen-bh1bm
    @joegreen-bh1bm Рік тому

    I have had my best profitable day with otm. I have had frustrations with it as well such as 3 times the loss (ex. p/l says -5, but when I close at that -5 my account shows -15 loss and the ask/bid is weiry too) my p/l would show and Im still trying to figure that out to why is that so.

  • @jadoncramer6512
    @jadoncramer6512 Рік тому

    So if I paid $625 for a call, it is still valid for another 35 days. But the current value of the call is $450. If I sell the call today ,can I do that? Will I only lose the difference between what I paid and what it’s worth?

  • @Bryan_Hernandez69
    @Bryan_Hernandez69 Рік тому

    Is out of the money better to use in day trades ?

  • @My-Nickel
    @My-Nickel 3 роки тому +1

    Thank you sir!

  • @Ana-nk6fy
    @Ana-nk6fy 3 роки тому +1

    Thank you 👍🏽

  • @maxjoey197
    @maxjoey197 Рік тому +1

    Thanks

  • @nixonw7950
    @nixonw7950 Рік тому

    you need a pointer. All i see are numbers, bottm right top left, numbers are everywhere...

  • @rockhead2700
    @rockhead2700 Рік тому +1

    You lost me. I don't see whatt you are referring to on your screen. Better to use a white board so we can track your explanations.

  • @graempate7708
    @graempate7708 3 роки тому +1

    Smashed that subscribe

  • @stockbulll
    @stockbulll 3 роки тому +1

    👍

  • @malekchouaki3794
    @malekchouaki3794 5 місяців тому

    Lot of talking 😅😅😅😅