Deciding on a Strike Price

So which strike price should a person decide on for a deep in the money DITM strategy if we are using for instance a $12 strike? If you are able to, it is best to always go as much as you can in the deep in the money call option that has a delta of a minimum of ninety percent. One option is also to go for the lowest strike listed by the exchange. One good idea also is to go after the option that has the closest breakeven price to that of the stock. A call option can be compared to purchasing a property for example. What occurs when one wants to purchase a property? The bank will demand a little small payment and this down payment, which is in most cases just a small part of the actual cost of the property. The down payment one has to make on the property is pretty much the same as an option premium one pays when they first purchase an option. In the case of a mortgage, one is able to obtain control over the whole property even though it has not been paid for entirely yet. This is the way that call options work; therefore you are able to obtain a one hundred percent control over the shares of stock even though they have not been paid for in their entirety yet. However the option purchase is even better yet. The difference with a mortgage is that after you have purchased it, you have to keep on making payments on it every month, whereas with an option this does not apply.

Beginner Money Investing Purchasing Cheap OTM Options Why pay more for something when you can pay less for it? Using Delta for your Benefit Deciding on a Strike Price