/biz/ - Business & Finance

>>57935906
I like to go deepest ITM, furthest expiration. It gives you the lowest extrinsic (theta) and lowest break even. Preferably your breakeven is less than 1% a year. AAPL (pic related) has a break even of 1.6% over 2.3 years (0.7% per year) which is perfect. You'll get around 1.4x leverage versus buying AAPL shares. The alpha and beta should scale similarly. I would look into the megacap SP 500 stocks for your list. The options liquidity and dates will be better. Stocks under a beta of 2, as you don't want to lose all money if the call goes OTM at expiration. SPY and QQQ if you don't want to pick individual stocks (and they're safer to leverage).