ITM Volume and Ability to Resell

[Kendra]

Hello.
I’m a newbie here. I have two questions.
With us buying so far in the money, I see that there is no volume really at a 50 or 60% strike price. What is our ability to resell? Is it a guarantee that we will be able to sell it when it’s time to sell.

And how do we know when an options price is overinflated?

Thanks in Advance

[George Halongton]

SPY is very active and one of the
most widely traded ETFs. There is
no reason why we cannot sell it.
Make sure we close it within a few
months of expiry and open another
one with several months of expiry.

[George Halongton]

Dear ITM Method readers,
Please participate and
contribute your inputs.
Much appreciation. Thanks.

[George Halongton]

Overview for all option chains of SPY.

As of November 8, 2024, SPY options have an IV of 12.16 % and an IV rank of 25.46%. The volume is 7,158,125 contracts, which is 100.73% of average daily volume of 7,106,465 contracts. The volume put-call ratio is 1.26, indicating a bearish sentiment in the market.

[George Henry]

Dear Kendra,

In addition to Heather Cullen books, I find the options book below very helpful.

https://www.optionsplaybook.com/

[Author]

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