What is so characteristic for deep in the money type of option?

ramsey1781 · Apprentice Joined: 30 Apr 2009 Posts: 1

I have recently started with investments. I have accumulated fair amount of assets and I have looking into the most efficient way to invest. Now, I would like to know what is so characteristic for deep in the money type of option, recommended to me by many. Thanks in advance. Any info will do and really mean a lot.

brian1029 · Apprentice Joined: 18 Sep 2011 Posts: 1

Any investment carries with it a risk in part. That is why you need to make sure everything goes as you plan, and that you make a good plan. When it comes to ensuring the value of your portfolio, you have to be aware what kind of portfolio you want to create. Among many other options deep in the money options are specific. The strike value is higher or lower, with respect to it being call or put option. Now, the underlying is thus higher, more valuable, and gives you more profit opportunity, with less risk involved. Hope you find the info helpful.