There are several factors to consider when picking a strike price: Moneyness, time, and liquidity. For moneyness, in-the-money options are relatively more expensive than out-of-the-money options. For time, holding all else unchanged, a contract with a longer life implies a greater probability that the option will be in the money before expiration. However, it will also cost more than a similar option with less time until expiration. For liquidity, consider almost always looking for options that meet your objectives with small bid-ask spreads if you want to consider reducing your trading costs.