The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be answering a member question which is, “Isn't trading in the money call options risky?” This is a question somebody sent in and they said, “Kirk, I’d love to have this on the daily call.” And again, if you guys have questions, send them into me. Just email them over or go to optionalpha.com/ask and leave me a voicemail there. But this question I think really came out of the questioning around iron butterflies, so why would we trade in the money call options or at the money call options when building out iron butterflies and iron condors. The question of riskiness is very subjective because I think when you’re trading an at the money or slightly in the money call option and you take in a massive premium, it's not as risky as you would maybe have been led to believe initially because that premium that you take in widens your breakeven point much further beyond where the stock is trading and again,