What Makes A Profitable Call Option

Many experienced options traders agree that a profitable call option is one that has a strong or undervalued stock with a relatively low price (between 75 cents to 3 dollars), the option should have a strike price that is slightly in-the-money, and finally the expiration date should be about a month or a little more.

For expert traders the above criteria are the only guidelines to follow. However, if you are starting out in options trading, the above criteria are an excellent place to begin.


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