Ok, here is the scenario -
Trying to enter into long deep ITM call position with target of about 4 weeks and considering following cases
Buy weekly call options and roll them into next week on the expiration day
Buy calls expiring directly 1 month out
Now the goal is to minimize the extrinsic or time value paid per day and find out which case achieves that.
Looking at option chain with ATM IV values, I notice that IV is showing lower for one week vs one month. Off course, in real world the IV would not remain constant for every week cycle, But assuming theoretically it does not change -
Would #1 be cheaper on cost basis ? So basically, total time value spent 4 times could be less than time value spent just once ?