This is the first episode on my podcast, Yield Guide where I talk about at the money, in the money and out of the money options and how I use each of these in my investment strategies to build wealth.
Summary
If you're buying stock options, buy In The Money options with far expiration dates. These are also called Leaps. Options with over a year before expiration. These options allow you to leverage a position and minimize losses due to Theta decay.
If you're selling stock options, sell Out of The Money options with near expiration dates. These options take advantage of more rapid Theta decay (profit for you) and have a lower probability of expiring with any value as they have no intrinsic value to begin with.