In this video, we will explore a strategy for selecting an in-the-money option strike price that only requires a 1% price move in the underlying stock to break even and start profiting on our option trade.
A 1% price movement in the stock to start profiting has a much higher probability of being profitable compared to at-the-money or out-of-the-money strike prices that can require up to a 10% to 15% price move in the stock to break even which may not happen before options expiration.
Of course, if the expected price move does not happen before options expiration, you may incur a 100% loss on your option trade. Actual option trades will be used as examples to demonstrate the 1% Rule Strategy.
Don’t miss this opportunity to learn how to trade in-the-money options that only require a 1% price movement in the underlying stock to start profiting. This 1% Strategy will increase your percentage of winning trades compared to trading at-the-money or out-of-the-money options, and this higher accuracy can make you a more successful trader.