How to know which ITM strikes can be traded?

F&O
1

Hi, is there a way to know which ITM strikes can be traded? Any specific thumb rule to select ITM strikes which one can trade for intraday? Pls guide, thanks

2

The whole point of picking ITM is that you don’t want time value. You want the option to act like a future, clean and direct.

If that’s the goal, then deep ITM is the best, because deep ITMs have almost zero time value and move almost 1:1 with the spot as delta is close to 1.

Only thing to watch is liquidity.

But if you’re choosing ITM for any other random reason, then don’t complicate it just pick slightly ITM. Those strikes usually have the best liquidity and are easiest to trade intraday.

3

I think you should be choosing those strike which have delta between 0.75 to 1 .