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

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Why buy in the money calls?” When you are trading stock and you’re looking to make a position with an option contract, in particular, a call option contract, many times, people will suggest or you’ll see online that people suggest buying call options that are in the money. And basically, in the money means that the strike price on the long call option you’re buying is at or below where the stock is trading at the time. If a stock is trading for $100 right now, you might buy a call option with the strike price of $99 or $98 or $95 or even as low as $80 or $70. Some option contracts go very, very deep into the money. And the reason that many people suggest buying these and we don’t know exactly necessarily if these are perfect opportunities or not… We’re actually doing some research on this right now, so I don’t know exactly where that sweet spot is with long call options, but