ITM Call Options: A Retail Trader's Strategy

When buying call options, you usually pick those that are out-of-the-money (OTM).

However, sometimes, the immediate in-the-money (ITM) call options can be cheaper.

These ITM options can move one-to-one with the underlying asset.

While these require more money upfront, they can lead to bigger gains if the price of the asset goes up.

However, their value may decrease when selling them because demand might decrease as the options become deeper ITM.

Moreover, time decay is lower due to initially low time value.

Therefore, consider ITM options when implied volatility is lower to potentially capture larger profits.