Today I'd like everyone to welcome AJ Brown from TradingTrainerHomeStudy.com. He's an options expert and his article below is a very valuable one that everyone should read! Please don't be shy and post your thoughts and opinions which options YOU prefer!
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When trading options using short to medium term strategies, we're not looking to hold positions for a year, six months, or even three months. The idea is to enter and exit our trades within three to 40 days. Returns of 5% to 150% per trade are common with short to medium term strategies.
When I surveyed participants about putting together a short to medium term option trad-ing strategy, the number one question I received was which options to preselect: out-of-the-money (OTM), in-the-money (ITM), or at-the-money (ATM).
Continue reading "Which options to pre-select: OTM, ITM, or ATM?"