ITM

 

Consider this: in-the-money (ITM) options can be a powerful tool for compound trading because they give you leverage on assets you already have a high probability of profiting from. ITM options, unlike out-of-the-money options, have intrinsic value—their price moves more predictably with the underlying asset, providing better control over risk and return. 

When you buy an ITM call or put, you're effectively gaining exposure to the stock's movements with a smaller investment, allowing you to capture gains without needing to put up the full capital. Now, this is where the magic of compounding comes in. By regularly rolling gains from successful ITM trades into new ITM positions, you're layering profit upon profit, creating a snowball effect on your returns. 

This strategy not only amplifies your ability to grow wealth but also mitigates the volatility often seen with riskier options. So, with discipline and a focus on ITM options, you’re giving yourself a compounding advantage that can steadily build a robust trading portfolio over time."