Buying deep OTM options
TL;DR My long call options work out about as much as if I just go long UVXY.
At first, I thought buying deep OTM call options with short expirations could provide gains even with low win rates. It is tempting sometimes when they are cheap. It can really hurt when the IV and premiums are high. Instead, I just get ravaged by a thousand cuts. Some cuts are cheap and others end up costing a bit more. Sometimes I get the direction with a lot of distance to the strike correct and still lose. I pay for all that theta for almost nothing.
Now when I want to buy these options, I look at UVXY on the daily. I think to myself that if I am going long volatility, where on this UVXY chart can I really buy with confidence? I see no helpful structure or much of a window to go long.
For now, this keeps me away from buying deep OTM options.
Fig. 1 - UVXY daily chart with MACD
Posted Sep 8, 2026, 11:39 AM UTC