When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option. While the goal for "vanilla" buyers is ...

ITM options are more conservative, while more aggressive traders may prefer OTM contracts When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in ...

An option can be either in the money, out of the money or (very rarely) at the money. These three different statuses for options indicate the relationship of the option’s strike price and the price of ...

Derivatives are instruments that obtain value based on the price of an underlying asset, such as a stock, bond, ETF, or commodity. Stock option contracts are securities that give traders the choice of ...

Trading futures is relatively easy compared to options. For one, futures move nearly one-to-one with the underlying. So, all the trading tools used for stocks can be applied on futures prices. For ...

Options traders typically want their option contract to be “in the money,” meaning the contract has greater value than buying or selling based on current market values. But depending on your risk ...

When trading out-of-the-money (OTM) options, the objective is to maximize your leverage on the trade. While In-the-money (ITM) options are more expensive, they are more likely to maintain their ...