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1:04
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Don't Get Caught in the ITM Trap #optionstrading #tastylive
You buy an in the money call expecting a rally. The stock moves exactly where you wanted. And somehow your percentage gain is lower than if you had bought the cheaper out of the money option instead. Here is why: when an option moves from out of the money to at the money, you gain extrinsic value. When it moves from at the money to in the money ...
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