A boatload of factors, Sam:
- Time of the week
- Option price movement gaps: say one strike price is liquid and goes from .75 to .80 to .85 and the other goes from 0.145 to 0.30 to 0.40, I'd be more inclined to get 5 x .80 than 10 x .40 (or even 10 x .80, if I'm feeling confident I can get out with just the minor loss)
- Factor of gambling: do I play safe and go ITM/ATM or take a bigger risk far OTM?
- Lack of the proper strike price: sometimes the next strike price is $5 away and there's no way it'll hit so you got no choice but to go for the more expensive ITM strike price.
I tend to go for that strike price which has lower option prices attached to it, in as far as that's possible: .20 to .40 usually works out pretty fine.
Rest is a bit of intuition: TBH, I look at volatility way too little. Only thing I care about is the S/R lines on my chart.
