... In-the-money, at-the-money, and out-of-the-money calls may be used. Each type has its own risk/ reward profile. Out-of-the-money options are cheaper than the at-the-money or in-the-money ... In-the-money, at-the-money, and out-of-the-money puts may be used. Each type has its own risk vs. reward profile. Out-of-the-money puts are cheaper than the at-the-money or in-the-money ... effective. At-the-money options have a greater chance of becoming in-the-money than the out-of-the-money calls, but you will have to pay a higher premium for them. In-the-money calls will...