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

Hey everyone, Kirk here again at Option Alpha and welcome back to the daily call. Today, I want to talk about choosing strike prices when buying options. Look. If you’re going to go out and you’re going to actually decide to buy options which is not the first thing that we would suggest to do and hopefully, you’ve recognized that by listening to this podcast and checking out our website at optionalpha.com. But if you are going to decide to go out and do some option buying, you have to understand the relationship that’s present between buying options and the price you pay and your probability of success or the amount of money that might make. Now, understand of course that the markets are pretty fair and efficient. If you trade something that’s highly liquid which we suggest you obviously do in any case, then the market is pretty fair and efficient in that you're not going to get a higher chance of winning by paying less money. It’s really what it comes down to. If you think about that as you start choosing di