KuCoin is a trusted crypto exchange to buy, sell, and trade Bitcoin, Ethereum, and 1000+ altcoins—powering secure access to the Web3 economy.

Crypto Exchange | Bitcoin Exchange | Bitcoin Trading | KuCoin

<p>Why I buy closer to the money instead of way OTM

For an example if $SPY at 760 → I take 761 or 762 calls max.

Closer strikes have higher delta, so they move more with the stock. Way OTM options have low delta — you need a big move just to make them work.

They also burn theta faster relative to the premium. Closer strikes give you better probability and cleaner risk/reward instead of lottery tickets.</p>

Why I buy closer to the money instead of way OTM
For an example if $SPY at 760 → I take 761 or 762 calls max.
Closer strikes have higher delta, so they move more with the stock. Way OTM options have low delta — you need a big move just to make them work.
They also burn theta faster relative to the premium. Closer strikes give you better probability and cleaner risk/reward instead of lottery tickets.

Why I buy closer to the money instead of way OTM For an example if $SPY at 760 → I take 761 or 762 calls max. Closer strikes have higher delta, so they move more with the stock. Way OTM options have low delta — you need a big move just to make them work. They also burn theta faster relative to the premium. Closer strikes give you better probability and cleaner risk/reward instead of lottery tickets.

Comment