What's everyone's idea of buying a strike close to the current price or farther away?

Asked 5 years ago

Let say ABC is currently trading at $20. Would you get a call for $18, $12. Or maybe go above...$22, $30. Thanks, guys/gals

Strike priceTrgovanje opcijamaBuying call options

Andia Rispah Igobwa

Monday, June 21, 2021

This strategy depends on your risk tolerance.

If you want to play safe, you choose a strike price at or below the stock price.

But, if you'd rather risk a little more, you go for the higher price.

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