🎯 The Case for ITM Options: Protect Yourself When the Market Doesn’t Cooperate
Traders love cheap, out-of-the-money (OTM) options. But here’s the truth:
When the trade goes sideways or slightly against you, OTM options bleed fast. ITM options? They fight for you.
💡 Why ITM Options Matter:
✅ Higher Delta – Your contract moves more closely with the stock. That means less waiting, more control.
✅ Intrinsic Value – ITM options already have built-in value. Even if price pulls back slightly, you’re not wiped out by time decay.
✅ Resilience – A strong ITM contract can absorb minor drawdowns. It doesn’t panic. You stay in the fight longer.
✅ Better Risk-to-Reward – Higher cost, yes—but better odds. You’re not relying on a miracle move just to break even.
🔁 Example:
Two traders buy calls on the same stock.
- Trader A: Buys an OTM call for $0.30
- Trader B: Buys an ITM call for $2.00
The stock pulls back $1…
- Trader A? Down nearly 100%.
- Trader B? Down, but still in the game—and the option still has value.
📌 ITM = Stability. ITM = Staying Power. ITM = Strategic.
Want smoother trades with more staying power when you’re right and more forgiveness when you’re slightly off?
Stop gambling. Start trading smarter. Use ITM.