How do you decide the strike price to select for a given option chain? For example: April $105 vs. April $100 vs. April $110.

The Precision Profits strategy is to buy “at the money” options. So if a stock is trading near, say, $105, Jeff buys the $105 options. If it is between strikes — trading at, say, $107 with strikes at $105 and $110 — Jeff looks at pricing for the two options, and expectations for the stock price (where he thinks the trend will go based on historical comparisons), and he chooses the option that he thinks best fits the opportunity.

As for the strike month, that depends on the trend. Jeff tries to own the month most representative of a trend. So if the trend is December through April, he buys in December and owns the April expiration. If a particular stock has no April expiration, he looks to the nearest expiration months to see what’s available and how it fits the trend.