Introduction:
Leverage is a powerful tool in the world of options trading, and the strike price of an option is a key determinant of the level of leverage an investor can access. By carefully selecting strike prices, traders can magnify their investment exposure and potential returns without committing large amounts of capital upfront. This article explores how savvy strike price selection can optimize leverage in options trading.
Strike Price: The Starting Block of Options Leverage:
At its core, the strike price is the predetermined price at which the holder of an option...