Hi! Please think of this as a NoStupidQuestions type of thing, I’m a newbie at all this stuff so yeah.
I know how the stock market works (sorta, not really maybe idk) and use the classic buy and hold template of low cost index funds etc. It has worked well and I don’t plan to stop… but I find options contracts interesting (ik ik don’t panic) and I just had a weird observation that might be stupid but whatever.
So: what’s the difference between buying (not selling) a put or a call like usual and waiting to strike gold from the daily/weekly/whatev psychology, and instead just placing a buy limit order with “GTC+Extended” expiration and waiting for your tarot reading for white dudes to magically happen?
Is there a technical difference other than the obvious? Or is it more of a “personal read on the market” + “conviction” type of thing?