This segment from our Open Discussion from September 6th is brought to you by Paul.
In short, Paul wanted to know why there is not a lot of discussion on Exit Strategies when buying Call Options. Also, he notes that typical trades that are shown are using Out of the Money Calls that have a low probability of ending up In The Money.
Well, we take a look at Paul’s questions:
– First, we tackle why investors would look at low cost, Out of the Money calls that have a low Probability and Delta… (about 9 minutes long)
– Then, we get into the ideas on Exit strategies for this approach, why even having an exit strategy might not improve the expected win-loss ratio, expectations of this approach and more (about 18 minutes).
Enjoy, and tell us your favorite approach for Long Call (or Put) Buying!
