Why does Discount Options pick those strikes and expirations?
Quick answerNear-the-money calls with enough time: far out-of-the-money contracts look cheap because they rarely pay, and short expirations leave no time to recover. Time-decay is weighed against the premium, not judged by the days left alone.
The details
- Delta: about 0.20 to 0.45; under 0.15 is a lottery ticket, over 0.65 is expensive.
- Theta check: (daily theta ÷ premium) × the days you expect to hold.
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