Directional investors can use options to replace a long position in the underlying, to  enhance the yield of a position through call overwriting, or to provide protection from declines. This document evaluate these strategies and explains how to choose an appropriate strike and expiry. We show the difference between delta and the probability that an option expires in the money and explain when an investor should convert an option before maturity. Topics include:

• Option Portfolio Builders
• Surfers and Stock Replacement
•  Digital Options: Difference between the Option's Delta and the Probability of being ITM at T
• Call Overwriting

This is part 23 of a 45-document course on Modeling Financial Markets.