ITM vs OTM Options: Which One is Better? | Understanding IV & EV & Live Examples
In this video, I break down the differences between ITM (In-The-Money) and OTM (Out-Of-The-Money) options, focusing on key concepts like Implied Volatility (IV) and Expected Value (EV). I also demonstrate real-world strategies including rolling over positions, the Poor Man's Covered Call (PMCC), and Call Debit Spreads. Whether you're new to options trading or looking to refine your skills, this video provides valuable insights and practical examples. Don't miss out—subscribe for more trading tips and strategies!
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Timecodes:
0:00 - Intro
0:53 - ITM vs OTM / The Basics
3:19 - ITM vs OTM Examples / Tesla Options
6:04 - When to play ITM vs OTM / Option Buyer vs Seller
8:49 - Rollover Turning EV into IV / CC's on MSFT
13:08 - My Trade # 1 / PMCC's on HOOD
15:19 - My Trade # 2 / PMCC's on TSLA
16:42 - My Trade # 3 / PMCC's on PLTR
16:52 - Live Example / Call Debit Spread on Tesla
19:38 - Thank you for watching :)