Choosing The Right Strike Price - PRO TIPS!

Picking the proper option strike price is paramount to your long-term option trading success.

In this video, we offer tips on how to compare various strike prices that include out-of-the-money, at-the-money & in-the-money opportunities to see which might be the best.

If you're an option buyer, you're going to want to watch this video.

Send us any questions you have, or leave a comment if you wish.

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DISCLAIMER: This video is for educational purposes only and should not be construed as financial advice or a recommendation to buy or sell any security or investment. Consult with a professional financial advisor before making any investment decisions.

DISCLOSURE: Some of the links in this description lead to products & services I regularly use and think you might find helpful. Wherever possible, I use referral links, which means if you click one of the links in this video or description and make a purchase, I may receive a small commission or other compensation.

As I'm part of the Amazon Associate program, I earn from qualifying purchases.

"This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.

None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

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"Margin Trading:

[joseluisgonzalez]

perhaps the best explanation out there for understanding options trading strike prices, you just clarified a lot of questions, thank you so much for this amazing video

[SHORT-FRIDAYS]

I have been watching videos on understanding options for a long time and your video here is, by far, the best video explaining buying Options; I appreciate you making it and I have saved to file.

[josecampillo]

Thank you the best explanation so far for me .

[SJTaveras]

Another amazing video I’m so glad I found your channel, one of the few authentic YouTube creators. Thank you so much

[billhaskins]

Another fantastic video Lee. Thank you so much for sharing your incredible insight.

[Marc-NZ]

Just bought your book and I'm leaving the construction sector to trade options, so challenging and getting great results already now need to invest in knowledge..Thank you for sharing all this knowledge Sir!

[douanthomas]

I like watching your videos. Very informative and like seeing the written step by step cheat sheet. Very HELPFUL! Thank you.

[MoMo-nhru]

Excellent video easy to understand Tx😊

[lilianojoko]

The video I’ve been looking for. Thank you so much, Lee. New subscriber.

[DougSmileyVirgo]

Lee, should we also be looking at Gamma? 🙏

[Woodstock]

very helpful breakdown of the different strikes👍

[MrUkun]

Great and interesting video as always brother Lee!!

[quantum]

I am a put trader. Put seller + put buyer. 👍👍Lee Lowell

[mechannel]

10:30 comparison of OTM, ATM and ITM returns 18:45 pro tips

[Theferg]

Great video sir!! Let me ask you where to someone from a beginner start do you have any videos made starting from a beginner? Thank you.

[rotorpilot]

Thanks for your videos Lee. Quick question for smaller accounts. Wouldn't it be a more efficient use of capital to sell put credit spreads, instead of selling a put? Thanks.

[quantum]

@Lee Lowell if I sell a IWM put at the top, can you roll your way to profitability? Is contango applicable to options?

[jb_makesgames]

Unfortuantly you ignore the commission which for options is materially different than stocks. Your breakeven must include not only the premium but also the commission to buy the option as well as exercise the option. Note the seller also pays commission on exercises.

[jb_makesgames]

Hey buddy how can you talk about the speed of option prices without mentioning gamma!. So much for your pro tips!!!!.

[kesor]

The important question is, how much are you going to lose if the stock moves against you. $100 or $1000 ...