Which strike price is best for option buying?
I'm curious to know, which strike price would be the most optimal for purchasing options? Could you elaborate on the factors that should be taken into consideration when making this decision, such as the underlying asset's current market price, volatility, and the investor's risk tolerance? Also, could you provide some examples or scenarios where choosing a particular strike price might be more advantageous? Thank you in advance for your insights.
How much amount needed for option buying?
I'm curious about the financial considerations involved in option buying. Could you elaborate on how much capital one would typically need to allocate for purchasing options? Are there specific formulas or calculations that investors utilize to determine the appropriate amount? What factors should be taken into account when deciding on the size of an option purchase? Understanding the financial requirements upfront is crucial for responsible investment decisions, so I'd appreciate your insights on this matter.