The following rules will help you put the odds in your favor when trading stock options:

• Buy those options that have at least a month left until they expire

• Lower implied volatility means the time premium is less, so generally the lower the implied volatility the better

• Buy stock options when you expect significant movement in the price of the underlying stock

• Buy those call options that have deltas of 50 or more and those put options with deltas of -50 or less

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