Which options to pre-select: OTM, ITM, or ATM?

Today I'd like everyone to welcome AJ Brown from TradingTrainerHomeStudy.com. He's an options expert and his article below is a very valuable one that everyone should read! Please don't be shy and post your thoughts and opinions which options YOU prefer!


When trading options using short to medium term strategies, we're not looking to hold positions for a year, six months, or even three months. The idea is to enter and exit our trades within three to 40 days. Returns of 5% to 150% per trade are common with short to medium term strategies.

When I surveyed participants about putting together a short to medium term option trad-ing strategy, the number one question I received was which options to preselect: out-of-the-money (OTM), in-the-money (ITM), or at-the-money (ATM).

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