The hierarchy of bullishness.


From least bullish to most bullish.
1. Buy shares.
2. Sell puts.
3. Buy calls.
From easiest to make money to hardest to make money.
1. Buy shares.
2. Sell puts.
3. Buy calls.
Notice that order is identical.
Buying calls is the hardest way to make money in options.
Which means I only buy calls when I am MAX bullish.
If something is fairly valued.
I buy shares.
If something is undervalued.
I sell puts.
If something is screaming undervalued with EPS exploding.
I buy calls.
Match your level of conviction to the level of difficulty.
That is the entire framework.
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