Strike Selection: The Premium vs. Probability Tradeoff
Cash-Secured PutsCompare deep out-of-the-money, out-of-the-money, at-the-money, and in-the-money strikes from a seller's perspective. OIC instructor Mark Benzaquen explains the tradeoff between premium collected and probability of assignment.
0:00 Strike Price and Expiration Basics
0:22 Deep Out-of-the-Money: Less Premium, Less Risk
0:52 The Risk-Reward Trade-Off
1:43 Premium vs. Probability of Assignment
2:11 At-the-Money and In-the-Money Strikes
2:57 What Influences Your Strike Choice
3:05 The Price You're Willing to Own Stock At
3:31 Using Technical Support Levels
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