Which Option To Buy: Deciding What Contract Is Best

(i) Day Trading

- Uses the underlying instrument with the highest possible delta (trade the stock, NOT the option)

(ii) Short term Trading (1 to 2 weeks)

- Can buy short term

- In-the-money option

- Large delta (respond closely to the movement of the underlying)

(iii) Intermediate term Trading

- Can use lower delta due to longer trading period

- Large moves might happen due to longer trading period

- trade at-the-money option

(iv) Long Term Trading

- use even lower delta

- at-the-money option

- LEAPS option

Credits: https://www.optionstrategist.com/products/category/free-analysis-tool