You are correct as long as you are correct on all the following.
1- Time (how much time is needed for move to occur, 90 % trader are wrong on this) Time decay will eat your profit, many people like spread for that reason.
2- Direction of the move, 50 % usually wrong, you lose fast in option premium if it start moving other way.
3- Magnitude of the move
I hope it help.
Farooq This post is for educational and amusement purposes only, and is not to be interpreted as trading advice. Consult your financial adviser before placing any trade.
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