Beginner question -
I have some understanding of the greeks, but would like to understand the next step -- selecting a particular option series.
Lets say for example, I am feeling pretty bearish on AGL and would like to buy some puts (no complicated strategies unless there is a good reason for it).
What would you look for?
Would you be best to select a target price (say -20% in 3 months) and buy something that would just be in the money if your price target is correct? - and sell perhaps on the way down as IV increased?
For a simple directional option play, would you be better off buying the option with the least time value?
Should you try to wait until IV decreases?
What do you look for?