Tag: ITMOptions

Introduction: Choosing the right strike price for an options contract is a pivotal decision for options traders. Strike prices that are In-The-Money (ITM) and Out-Of-The-Money (OTM) offer varied risk-reward dynamics and can profoundly affect the strategy's outcome. This article delves into the nuances of ITM and OTM strike prices and how to strategically utilize them to align with your trading objectives. Understanding In-The-Money (ITM) Options: An ITM option indicates that the contract has intrinsic value. For a call option, this means the current market price of the underlying asset is above the...