it is said that most option buyers suffer as most bought option expiry worthless. I would think that this is more applicable if you are buying OTM options.....plain buying of OTM options is to be done more for insurance
if you have a trend trading system, the ITM option give you a good advantage to trade positional....how? why?
if we trade postional with futures we have the following to consider
1. delta of futures is always 1 (both ways)
2. overnight risk of move against futures is high
3. if circuit is hit against us, then we are not in a position to do anything about it...cannot protect it or limit the loss etc
so how does ITM option help? details in next post
if you have a trend trading system, the ITM option give you a good advantage to trade positional....how? why?
if we trade postional with futures we have the following to consider
1. delta of futures is always 1 (both ways)
2. overnight risk of move against futures is high
3. if circuit is hit against us, then we are not in a position to do anything about it...cannot protect it or limit the loss etc
so how does ITM option help? details in next post