Looking for mean reversion. Also assuming the reason behind the move is known, earnings, etc. What say ye???? John
Not sure what you mean by mean reversion. If you buy a DITM call it will very closely replicate the movement of a long stock position with a lower cost and overall lower risk. DITM calls have deltas close to 1.0 (usually .98 depending on how DITM you go) and little if any time value premium unless you use DITM LEAPS calls.
??..............instead of buying the "guts", buy that straddle instead. It should be the "same" position.