Options Strategist
Summary: In Episode 18 of 'Saxo Options Talk,' Koen Hoorelbeke and Peter Siks explore the strategic nuances of choosing between in-the-money (ITM), at-the-money (ATM), and out-of-the-money (OTM) calls. This episode is essential for traders seeking to optimize their call buying strategies based on market expectations and risk tolerance.
Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks.
"Episode 18 - use case: buy ITM, ATM, or OTM calls" offers a detailed examination of a common dilemma faced by options traders: deciding whether to buy ITM, ATM, or OTM calls. Koen and Peter provide insights into the scenarios where each option type might be most beneficial, helping traders make more informed decisions.
The choice between ITM, ATM, and OTM calls should be based on your expectations of the stock’s movement and your risk tolerance. Constructing tables and scenarios can help visualize potential outcomes and make informed decisions.
Write out the calculations for stocks you are interested in to better understand the potential outcomes and fit them to your investment goals and risk appetite.
In "Episode 18 - use case: buy ITM, ATM, or OTM calls," Koen and Peter provide valuable insights and practical advice for traders to refine their call buying strategies. Their expert guidance helps traders navigate the complexities of options trading, making more informed and strategic investment decisions.
Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.
After tuning in, join me on my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.
We're eager to hear from you! Send your options-related questions to optionquestions@saxobank.com. Selected questions will be addressed in future episodes, providing customized advice and insights.
"Episode 18 - use case: buy ITM, ATM, or OTM calls" equips traders with the knowledge to make strategic decisions when buying calls. Koen and Peter’s expert insights and practical tips provide a comprehensive guide to understanding the different risk-reward profiles of ITM, ATM, and OTM calls. Tune in to master your call buying strategies and enhance your trading performance.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
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