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If you expect a big move, buying OTM makes some sense, concentrating on the gamma rather than the delta. As the stock moves in your favor, the delta will increase and the gamma will decline.

This is the type of strategy you'd employ if you intended to hit homeruns. As the stock moves in your favor the high gamma will push the delta up pretty quickly. On the downside, if the stock only moves a little in your direction, it's not going to do much for you with the low delta. Atleast, the theta is a nonissue that far out.

Right...I suspect the author, who is very knowledgeable, was looking at an interplay between gamma and delta to give him max leverage for a period of time...I need to run the math sometime to try and figure out exactly what he was doing. I understand the basics of his strategy, I just suspect there was more to it than is transparent on the surface.

Cheers Kev
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