The two most important questions for option buyers are, what will be the next direction of the underlying price movement and when will this happen. Once you have thought through these two questions, this tool will help you to choose from a selection of options with different leverage.
the direction in which an underlying contract moves can be an important consideration in choosing an option strategy. A trader who believes that the underlying market will rise will be more inclined either to buy calls or sell puts. A trader who believes that the underlying market will fall will be more inclined either to buy puts or sell calls.
In each case, the directional movement in the underlying market will increase the likelihood that the strategy will be profitable.