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

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we’re going to be talking about how you could actually buy options with a 70% chance of success. Now, everyone always talks about option selling and that's mainly what we focus on as well, is option selling with a high probability of success. But oftentimes, I get questions around option buying and can you buy options with a high probability of success. And so, the answer to that question is yes, you can definitely buy options with a high probability of success. That means that you’re buying options that are deep in the money or in the money option contracts and when you do this, you're paying a really high price for those contracts because they have the inherent possibility of generating some money. Now, the problem with buying options even when you buy them in the money is that you often give up a lot of your premium early on to volatility and time decay just like you would get a lot of that premium if you we