it seems difficult to make money from it on stocks you are somewhat bullish on. for example i own a stock that i am bullish on currently priced around 3.50. there were 3 option contracts available at strike prices of 2.5 5.0 and 7.5. if i sell open the 2.5 option i get a $94 premium instantly but if the contract is excercised i will lose money on the sale since i bought at about 3.25. if i sell the 5.0 option i only make a $5 premium. is selling the 2.5 option basically a ‘short’ of the stock so if it tanks to $2 i make a profit? my confusion is that calls (or puts) can be both long or short depending on which option contract you enter into?
my account only allows level 1 options trading right now so how do i take advantage of options opportunities in my portfolio until my account is approved for level 2 and 3 options trading?
thanks


