📑 Contract Selection
Picking the right contract is just as important as picking the right direction.Here’s how to choose contracts when trading with Gextron.
Expiration Dates
- For monthly targets → choose contracts 45–60 days out.
- For weekly setups → choose contracts with 2–3 weeks until expiration.
- For day trades / scalps → use 0DTE or 1DTE contracts, but size smaller.
Strike Price
- Favor in-the-money (ITM) contracts for higher probability and stability.
- Typical range: 30–38 delta for swing trades.
- Go slightly out-of-the-money (OTM) only when momentum and flow are strong.
Volume & Open Interest
- Stick to contracts with high liquidity (tight spreads, strong volume).
- Avoid illiquid strikes where slippage eats profits.
Example
- Market bias: bullish above P-Trans on QQQ.
- Entry at support level with daily target overhead.
- Select QQQ call option, 30 delta, 45 days to expiration.
👉 Next: Manage trades effectively with Risk & Reward.