I think If somebody trade in deep ITM, then there are below advantages.
a) Deep ITM works almost like futures(delta 1) while option(delta 0.8~.85) at position and once moves in profit, delta approaches towards 1.
b) Loss in sudden crash is limited to what you paid.
Research shows that futures always fetch more profit then option , but in case there is any unexpected movement, 1 day is enough to erode all profit earned in 1 year with whatever strategy and rule you follow.
So in my view , If ITM options are played systematically, they can be good bet for wealth increase in long run.
But at the same time ,OTM options are key to loose all hard earned money
I follow SH 315 stratagy using deep ITM. Although I get difficulty in last week, when I switch current month option to next month options but I cannot take risk of holding futures overnight. Sometime I miss rally which happens in last week.
a) Deep ITM works almost like futures(delta 1) while option(delta 0.8~.85) at position and once moves in profit, delta approaches towards 1.
b) Loss in sudden crash is limited to what you paid.
Research shows that futures always fetch more profit then option , but in case there is any unexpected movement, 1 day is enough to erode all profit earned in 1 year with whatever strategy and rule you follow.
So in my view , If ITM options are played systematically, they can be good bet for wealth increase in long run.
But at the same time ,OTM options are key to loose all hard earned money
I follow SH 315 stratagy using deep ITM. Although I get difficulty in last week, when I switch current month option to next month options but I cannot take risk of holding futures overnight. Sometime I miss rally which happens in last week.