VIDEO: In the money vs. out of the money

Hello, VWAPians!

The Warlock – Kenny Glick – here.

I wanted to take a moment and reach and address all my option players out there…

Many members of my Warlock’s World community turn to options as a way to leverage a smaller account, but still participate in VWAP trades.

I generally prefer to trade using stock, but options are a great way to gain exposure to intraday moves without shelling out a ton of money.

However, while options can provide fantastic returns when they go in your favor, they are also riskier.

In Warlock’s World, I teach my members to trade in- or -at-the-money options, as they tend to move most like the stock share price in real time.

But what do these terms actually mean?

Well, you’re in luck! Our handy moderator Boom threw together this video to help explain.

Click here or on the image below to watch the video.

In-the-money options have less risk than out-of-the-money options, so they require a greater amount of premium up front.

Translation: they cost more.

It may be tempting to buy out-of-the-money options, but with less intrinsic value, these options require a stronger move in the underlying stock to move in price.

There’s a lot of factors that go into option pricing…maybe we can convince Boom to record another helpful video on this topic in the future…

But to learn how best to trade options on some of these crazy stocks on an intraday basis…

You’ve GOT to be a member of my Warlock’s World!

That’s all for now, VWAPians!

Kenny “The Warlock” Glick

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