Didn't read the whole thread. But clearly you should NOT be trading options. You asked for a book. Here's one...New York Times best seller for a loooong time. Start with this before you seek options. The book is old, but the concepts still apply...
Actually we like to be those that start with a B, not a M. i.e., guys like Soros, Paulson, Simons, @destriero ..... The book is old, but the concepts still apply...
Good questions, I've been wondering the same myself. This is going to be my personal strategy: 1. Look for stocks in a strong up trend. 2. Wait until they pull back and RSI is oversold. 3. Buy an OTM option with at least 60 days to expiry. NB: this is just my personal opinion, I'm a newbie so most likely don't know what I'm doing. Just thought I'd share the bare bones of my "strategy".
I read somewhere that intrinsic value should be no more than 1% of the underlying (as a rule off thumb).
Wow, great post. I now finally understand how to assess delta and why it's important. I was thinking of starting out buying slightly OTM options but now see that I'm better off getting an ITM option. What is the minimum delta you'd recommend if one is looking at buying options with at least 60 DTE?