Tag: DecisionMaking

Introduction: Choosing the right strike price is one of the most pivotal decisions in options trading. As much as it is a technical decision based on financial forecasts and market analysis, psychological factors also play a significant role in this process. Investors' attitudes towards risk, their market perceptions, and past experiences intricately influence strike price selection. The Interplay of Risk and Reward: When selecting a strike price, investors often balance their appetite for risk with their desire for rewards. A more aggressive investor might go for an out-of-the-money (OTM) strike price, betting...