strike price for option
I am also keen to gain insights on how to select strike price for options.
Personally when selling option to collect premium, I pick strike price that is below support level.
If I do want to get assign the stock, I will pick strike price above support level.
Support level together with trend line serve as guidance to the strike price I pick as strike price.
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Shogun80 : New perspective to me. For me, when selling puts, I will pick strike prices near or slightly below the intrinsic value of the company. But if it’s way over valued… then your method will be the most suitable. Never thought of that… thanks for sharing…
Wonder OP : yes, esp if selling put to get the stock the intrinsic value is an impt factor to consider.