Deep-In-The-Money Call Options Explained - Save Thousands Of Dollars!

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Title	:	Deep-In-The-Money Call Options Explained - Save Thousands Of Dollars!
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Hi Lee, watched many of your videos, thank you It seems like (in a very general sense), as someone who intend (or don't mind) to own the shares for the long term, Buying a DITM call and/or Selling Put makes the most practically sense and generally has a lower risk of entering the market? - (My take away from most of your videos)
Comment from : Banana Republic Media

This video is 2 years old but I think this will be ever green I’m a newbie learning about options You have explained it so clearly I don’t want to wait for 6 months expiration to test out this strategy I’m sure it will work if done correctly Is there any other strategy for me to test out for quick results?
Comment from : Rajni Vaidyaraj

It is not significantly different than buying stocks on margin When you win, you win 300; when you lose, you lose 300
Comment from : Ryan haha

You are amazing Tks for share
Comment from : Ronaldo Serafim

What about time value? Ie I bought apple 6 mo call 200$ it goes to 199 a month later it will be alot higher premium right?
Comment from : EliteWay Ez

All profit told here like theta never existed I am confused
Comment from : Ed Sarinas

What do you do in a bearish market?
Comment from : Harvie Childers

"Buy between bid and ask" That's not how it works, you don't choose You pay the ask price, hence the name
Comment from : LiberatedMind

Great video One question tho: why not buy those call options with a delta closer to 99 that also have a lower strike price? Thanks in advance
Comment from : OK Computer

Great video thank you 🙏 when you own deep calls can you sell covered call on those like when you own stocks? Or how does that work
Comment from : steve braff

Could you do this strategy and straddle with a put for caution control?
Comment from : Eddy Free

One of the best and easiest explanation on options! Great video👍🏽
Comment from : Eric Nazario

A question for Mr Lee Lowell brYou said that at the expiration, person can exercise the call He can buy the 100 shares at price 100 But if the current price of stock is 200 Can we still buy it for “strike price - 100”?
Comment from : Shivam Dhamija

Hi lee how do u get your book thanks
Comment from : Joe Mahadeo

Thanks for the education and reminder The DITM call strat is more relevant today as inflation and yields been hammering nails in the back of our minds of how hot the market can be and the consequences as we’ve seen in the past month or so What are your thoughts on DITM call LEAPs?
Comment from : panda007

Thank you for the video Hope you don’t mind answering a question for a newbiebrbrIn the example you gave, your cost was $41k to purchase the call, but wouldn’t you also factor in the $10k necessary at the time of expiration for the shares into the ROI? Or is the ROI in your sheet from selling the option itself at an assumed price?
Comment from : hegushno

Another risk is you’re limited in time by the expiration Your expectation must occur before the expiration time
Comment from : Richard Head

Thank you very much for your great video! I tried on my brokerage accounts, but they do not offer delta value Can I buy DITM call option without delta?
Comment from : Linda House

Can’t believe I found this vdo so late, thanks for teaching
Comment from : McLOVIN

Great video I applied this and save money Only issue is that the volume is only 152 due to the expensive premium for FB
Comment from : Mohamed Nasser MD

Do u still do options love how u explain things 👍🏽
Comment from : Vip Studio

thanks Lee Great video It is so hard to feel bullish on many stocks right now The market is so bloated
Comment from : Kimber Lini

Great video Lee, a quick question is there any reason for not going for higher delta than 90 with lower Strike Price? You pay higher price but lower the break even? Thanks in advance
Comment from : Ron Aurora

What do you think about buying long-term OTM options? Say I have a 1-year 15 OTM call, if I'm pretty confident the stock price is very likely to increase by 15 within <3 months and my call will become ATM, and if that happens I sell my call Is that a good strategy? I'd like to hear your opinion
Comment from : Maya

can't you just exercise immediately?
Comment from : Andrew Dornan

It's 10/2/21 I'm laughing inside when you're being optimistic about the new President after seeing what he's done in just 9 months We'll be talking bears by December!" LolThank you for this video though It's very informative I will look into this strategy If your other videos are this good, I will be a new subscriber 👍
Comment from : plumtiger1

Been trading options for twenty five years brbrThis video is well done and a great tutorial for beginners trying to understand the option market brWell done 👍✅
Comment from : Robert Mitchell

Selling DITM call ?
Comment from : Robert Mitchell

Thank you Sir for your book "get rich with options" and video lessons I'm so amazed how my understanding got better with your book! and the videos are a plus! where English is my second language, I was able to understand your teaching I have a background of around 4y learning how to trade penny stocks from Timothy Sykes I thought I can take my trading journey to another level! Thank you for your teachings!!!
Comment from : Yanina Pineda

Why are you buying at 100 strike? If you say you are bullish and ITM and Apple is at $139+, shouldn't your strike be at $145+ or 150+? What you are describing is Selling an OTM Put!!
Comment from : GB

I’m only buying deep itm calls from now on 😅
Comment from : ChiOptnsTdr

This gives you leverage, which means if you are right to make more and if you are wrong you lose more
Comment from : mitchrc3

Lee, an excellent explanation of DITM LEAPS, in particular the stock P/L & ROI vs DITM P/L & ROI comparison spreadsheet It is saved and liked Could you help explain what the stock P/L & ROI vs DITM P/L & ROI comparison looks like if the AAPL stock price falls between the strike price of $100 and the current price of $139, say, $120? This seems a more likely scenario if the market ends up in the direction opposite to what you had expected
Comment from : Henry Wang

If you buy a call option on margin is there high margin maintenance on it? Your very smart great video
Comment from : Keith Anthony

U so great! How abt if the option is on expiray date, n apple stock px is the same at 139means not moving, so how the option px for dltm call at $100? Is that means i still can get back $39 ?
Comment from : greengreen pear

Very nice
Comment from : greengreen pear

You made a retarded argument regarding Out Of The Money calls if the stock moved towards that 200 strike and there was still some time value left in the option that option would be worth much much more than its purchase price brYou obviously haven't bought side by side ITM and OTM options for same dates to see the difference in returns
Comment from : A Pettie

Can we do long vertical spread to cover a bit of downside or its not advised ?
Comment from : holypunk12

Wow 💖
Comment from : holypunk12

Here in Brazil options are automatically exercised even if you don't have the money brIf I have a option for stock A selling for US$10 in the expiration and I payed US$0,30 and in the day of the expiration the stock is US$11, and I don't have the full balance they will give me the shares and I have 2 bussines days to put in the balancebrOr I can simply sell at the next trading day or even after market And close the operationsbrThere's one disadvantage of this if you exercise your option this way they will billing you 0,05 of the entire value and another value for this
Comment from : Bruno Foca

Super explanation sir
Comment from : Venkat NJn

Hi Lee, Your explanation is so succinct and clear Great job Why Theta is not as important to you compared to other Options coaches on YouTube?
Comment from : Leslie Hinds

How can you talk about options without speaking on VOLITILITY?just because price moves in your direction $3-$5 doesn't mean it's an automatic profitprice is king in the underlyingVolitility (with price) is king when trading optionskinda misleading
Comment from : Renzo Walter

Dropping knowledge bombs! 👍
Comment from : Nolas

Great explanation Lee! Would I be correct in assuming that waiting for the stock/etf to be in an oversold state , the call options would be cheap and increase my probably of profit ?
Comment from : Devon K

Thank god for clarity; good work Mr Lowell
Comment from : Joseph Jones

Thank you great video! One question, does the DITM strategy have a draw back if the IV is a little higher eg IV of 45 thus causing the premium to be higher resulting in a like for like result which is the same as buying the actual equity (due to higher entry cost)
Comment from : Parag Nandha

Good thing you didn't buy that AAPL call option at $4100 premium Or did he? Apple 52 wk high was $14509 a few days after this video was made My calculations you would have made no more than $500 max That's if you closed it after just a $5 stock price increase Deep in the money 174 day expiration I doubt you took profits so early
Comment from : Clint Bracken

This video does not accurately mention risks such as time decay, the fact that options can expire worthless, etc Please be thorough, ppl might invest savings based on ur advice
Comment from : Delezo

Super helpful, thank you! I see that higher deltas have higher prices As delta moves from 90 to 999, what happens to ROI?
Comment from : GodlessPhilosopher

Hi Lee, thanks for the video its very enlightening! In US Market happen to end up liquidity on the screen (DITM) if the stock price goes to high (APPL in your example)?
Comment from : Kazuo Ishikawa

Excellent video Many you tubers explain how LEAPS work but fail to explain how to secure the profits
Comment from : ApocBlack

Very informative and awesome video!
Comment from : Jie Kie Li Wong

Excellent
Comment from : Dennis Kessler

Does this guy actually understand options though?
Comment from : Rekenbij

What about running the numbers in the probability calculator till u get an expiry date that gives you 90? Would that be something like a three year expiry? Did you pick the 6 mnth expiry date because it typically hits the 50 mark when probability is calculated?
Comment from : Nine Hundred

Great video It's 5/1 AAPL is sitting at $131+
Comment from : Bryan Brooks

Thank you
Comment from : Shawn Ziaee

Hey Lee is this the same as LEAPs options?
Comment from : mikey

Thanks for sharing your knowledge
Comment from : Paul Serpa

Best explanation
Comment from : Einzelfall

Thank you very much for the wonderful explanation
Comment from : Rafael Ramirez

Lee U mentioned I volatlitycom How do you use this in your trading decisions? Also, do you have a default expiration on your DITM calls? Do look at the stocks book values & other measures to gauge how high a stock may rise within your expiration date decision? How do day traders and option traders affect price points of a stock? Again, Always appreciate your time! Tim
Comment from : Censord Ice

I have to reverse my thinking about calls lol
Comment from : Michael Gayda

Hi LeebrHope u have a nice weekendbrI send u a message via FB messengerbrWait for u response
Comment from : lai vincent

HELLO LEE I HAVE ONE SIMPLE QUESTION NO BODY DOING DEEP IN THE MONEY CALL OPTIONS ANSWERS ME OK I WANT TO BUY FOR EXAMPLE STOCK AGNC RIGHT NOW THE DEEPEST CALL OUT FOR 2023 AT $3 IS 1400 BID PRICE TO CREATE SO BASICALLY, AND CORRECT ME IF I'M WRONG, I HAVE TO PAY 1400 TO CREATE CONTRACT + 300 FOR THE ACTUAL 100 SHARES IF I EXERCISE IMMEDIATELY (WHICH I DO) AND MY AVERAGE WILL BE AT $3 FOREVER??? YOU CAN BASICALLY PAY YOUR WAY TO THE FRONT OF THE LINE IN TERMS OF PRICE AVERAGE IN YOUR FAVOR IF YOU PLAN ON KEEPING THE STOCK VERY VERY LONG TERM???? SO IN OTHER WORDS, I WANNA HAVE MY AVERAGE AS LOW AS POSSIBLE, SO YOU CAN TECHNICALLY "CHEAT" TO GET THAT AVERAGE BUT YOU HAVE TO PAY HEAVY PREMIUM UP FRONT TO DO SO BUT I CAN EXERCISE IMMEDIATELY AND MY AVERAGE WILL REALLY READ $3??????? 🤯🤯🤯🤯
Comment from : 430aoncrypto

That Apple option trade is brutal at the momenthope it comes back for you!
Comment from : Travis Sager

Did it! Followed the training and the notes - paper traded at least 3 times the day I pulled the trigger and for about 1 week before that Success! The main reason was to expand capacity by making full use of all my cash assets It works Follow the videos, notes, his book and give it a try (on paper first)
Comment from : Tom Rochford

That's a great strategy Lee, is there a way to further reduce the premium by vertical spreads? Would vertical spreads work for DITM calls?
Comment from : Vishal Khullar

What a great video, thank for sharing, and keep up the good work!
Comment from : M Scofield

Excellent video the delta and the strike price near the current stock are the main factors for buying a deep-in-the-money option
Comment from : QBWillieB

Hi in the short call spread , what difference between sell ITM call and sell OTM call ? I saw two type of this spread all the same is buy OTM call ?
Comment from : Allen Zhang

Great vid man
Comment from : Larry Marc

You can also sell OTM Cover Calls on your calls you buy to collect premium Great video 👍
Comment from : Joseph W

Hi Lee, I'm still having some trouble understanding the DITM stratgy I'm assuming this is best used if you're primary goal is to buy the stock but how do you make money if you exit the option before the exercise date?
Comment from : Evan Aagaard

Great video! And it makes a lot of sense What is your opinion on using this with a Debit spread? Going with your method of deep ITM, but also selling an OTM to lower cost basis?
Comment from : Stevey Jay

Excellent video, thank you for explaining with such clarity and example Make so much sense now
Comment from : Ron Aurora

Lee, your videos are full of great info Thank you! Hey, I had a question about splits How does this affect your AAPL DITM option example? AAPL did a 4:1 split in Aug of 2020
Comment from : Andrew Thomas

Should a STOP Loss be set? If so, how much or what percent? How do you calculate a Stop Loss for an option?
Comment from : barry abrams

Sir: Do you have consider the volume and open interest? Should volume be 100 or more and open interest 1,000 or more?
Comment from : barry abrams

Great video Lee Could you film a video to walk over bull put spreads and how to best unravel them in the off chance the trade takes a turn? (Ie gets close to your style at expiration)?
Comment from : Jess Thomson

When exercising the Option - does does that mean people will sell you a stock trading above 141 breakeven for a $100 strike priceIsnt that a loss on their end?
Comment from : Marshal Moyo

Hey Lee, how did you get the value for "future volatility"?
Comment from : simon mcneil

hey Lee bought your book How to get rich selling options great read im making big bucks selling tsla cc,s
Comment from : stephen s

Great video! Thanks Lee for going through this trading strategy!
Comment from : Sylvain Beriault

Hello, LL Thanks for the video I want to buy to own 100 shares of Pinterest $PINS at $7000 per share within the next 4 weeks Would I look at buying a deep in the money call option or at selling a cash secured Put option?
Comment from : J W

Awesome video Thankyou for sharing
Comment from : Guru 2000

Hi Lee - excellent video! Isn't theta/options decay an issue if you wait until expiration to take action? wouldn't it be better to pick a profit target that is lower but still very good? Thx
Comment from : Glenn Ericksen