One key I look for is this...
I go for lottos that only run about 1% of >> pps <<
so... a $25 stock, if you can find a reasonable percentage gain within 5-15% expectancy, I look for an option around
.25 .... which is one percent of cost.
OR LESS.
On a HOTTTTT MOVING STOCK- Dont pay more than 10% premium.
Im in 2 hot/opposites and paid about 10% premiums for them.
CIT/FAZ....which Im under in both- cuz my premiums upfront didnt give much breathing room.
But... those are lottos with small amounts in them.
Normally 1%ish rule for me works alright.
Very low risk, with usually upsides of 100%+ is reasonable target hit.
Hope this helps a bit.
-V. =)
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