Been trading for a while now but still confused about strike prices. I know you pick them before entering a trade but not sure how they actually impact the outcome.
Sometimes I see multiple strike price options available and I just pick the middle one. Is this affecting my potential profits or losses in ways I don’t realize?
Focus on market trends when choosing strikes, avoid picking the middle option.
Strike price controls how much you’ll make and whether you’ll win. Each strike has its own risk-reward setup.
Don’t just go for the middle strike by default. Higher strikes pay more but they’re tougher to hit. Lower ones are easier but the payouts suck.
Always check those payout percentages first. You might find a slightly harder strike that pays way better if you’re sure which way things are headed.
My biggest mistake? Ignoring strike prices for months. Lost three straight Gold trades because I kept picking strikes way too far from current price.
Now I check how the asset’s been moving first. Small ranges mean closer strikes. High volatility means distant strikes with better payouts.
Strike distance affects win probability. Closer strikes yield higher win rates but lower payouts. Distant strikes have lower win rates but higher payouts. Use this formula for analysis: (win rate × payout) - (loss rate × stake).
Randomly picking the middle strikes is not the way to go. Each strike has its own odds and payouts that should align with your market setup. If you see strong momentum, consider choosing distant strikes for better payouts. In a choppy market, go for closer strikes to increase your win rates. Always analyze the asset’s movement in your timeframe instead of relying on luck.