Hi, I am new to this forum. And to Options trading. I have read a lot before posting here. And based on that, have come up with some use cases I can execute. But I am looking for confirmation of my understanding. Can you help me with these below? Thank you. PS - I use only Buy side for discussion, I understand it applies to Sell also. 1. Is it correct that out-of-the-money Options are always cheaper? I always see them under $2 - like $1.5 to cents. Because anyone can buy at the market for lower price. Can this be taken as a general statement? 2. Is it correct that after the option becomes in-the-money, its price goes up by almost same price as stock? For a stock is trading at $50, I buy a Call@$50 for $1. If the stock goes up by +$10 to $60 - the Call price will also go up by almost +$10 to $11? Minus some difference. 3. If 1 & 2 are true, I made a Use Case of how I can use a Call to Leverage my Buy. Assume a Stock is trading at $50. I buy a Call Option at $55. Because it is $5 out of the money - I can hope to buy the Call@55 for $1. If stock does not go up, or only goes up to $55, I just let it expire at its new lower value. And lose a max of $100. If stock does goes up by +$15 to $65, the option will also go up by +$15, making it $1+$15 = $16. So I have $10 gain on $1. That's 1,000% Gain? Is this correct? In what cases can this go wrong? 4. If I hedge a Dividend stock with a Put option, I can keep all Dividend(-premium) with no to minimal risk? I am going to make up some numbers to make the point. Stock trading at $250 pays a dividend of $5 in the coming week. First, I buy Put@250 at $2 Then, I buy the stock at $250. Stock pays $5 dividend. I sell the stock at $250 at $0 loss. $5 Dividend-$2 Premium=$3 Profit. Basically, the dividend is only reduced by the premium. Is this correct in theory? Where and how can it go wrong? 5. If 4 is correct, it will work with high price stocks only. Because at a given yield, we need the dividend/ share as much higher than the premium as possible - to keep most dividend. $1 Dividend - $1 Premium = $0 But $5 Dividend - $1 Premium - $4. Thats keeping 80% of the dividend. Thank you.