I have decided to utilize some call options as I think we are at a turning point in the mining sector. I would appreciate any insights that anyone has that is knowledgeable about options - specifically, I am trying to better understand the process involved in selecting which strike price and expiration.
I am familiar with the greeks and use the basic calculator from ivolatility.com to get a sense for the options true current value.
Couple of examples - lets say I am using a daily chart and expect price to rise 30% over the next 6-8 weeks. If price is currently at 15 and I expect it to reach $20 - how much time should I buy? What strike price would be best? I am looking to better understand the thought process behind the selection and what the various points to consider are.
2nd example - lets say that I am using a weekly chart and I expect a rather large move over the next several months. Should I buy longer term options deep out of the money - and if so - how far away from the current price; or, should I stick with the daily charts and keep buying/selling as price gets overextended?
Would really appreciate some insight from those of you that are more knowledgeable about using options intelligently.