Buying options one day before the earnings announcement hoping for a big gap in the stock price movement when the market opens.
I know that many traders like to buy options just before the earnings announcement and hope it will gap up the next morning after the announcement so that we can make a big profit. [...]

Popularity: 10% [?]

Buying option with near month expiration, because the same strike price option is relative cheaper.
The main reason for doing this is that you can get more leverage; more bang for your bucks kind of a thinking. Many of you don’t realize that even in-the-money options do have time value and it erodes the fastest during [...]

Popularity: 10% [?]

Buying far out-of-the-money option, because it looks cheap and hoping that it will soon increase in its premium.
Those of you who choose to use far out-of-the-money options for seeking handsome profit on just buying calls or puts with limited capital outlay will have to be prepared to lose everything. The probability is very low. [...]

Popularity: 10% [?]