Option Millionaires

[CrocHntr]

Question for you options experts...

Given a scenario where you can buy a call "in the money" trading on par with the current stock price verses a call "out of the money", which offers a better value.

Take C for example. We all know that Citi will either pop or drop on the results of the stress test due May 5th. If I were to way to play a call, for example which scenario offers better returns:

C stock price is currently at 3.25
1. May $1 calls trade for $2.25 (right on par with stock price)
2. May $4 calls trade for $0.23 but are obviously out of the money.

Which provides a greater chance of return if the share price were to move to $4-$5? I assume that out of the money calls offer a bigger premium (due to risk), but want to make sure I'm understanding this correctly.

Thanks for your advice!