When choosing a call option, there are usually a number of strike prices that are in-the-money. My understanding is if a buyer chooses the lowest strike price, he will pay a higher premium but the break even price will always be less than a strike price closer to the current share market price.
In the case of the Nov 24, 2017 calls for Micron Networks, the range of strike prices is from $34 to $44.50.
Let's consider 3 cases:
Strike Price $34, premium of $6.20 with a break even at $40.20
Strike Price $35.50, premium of $4.75 with a break even at $40.25
Strike Price $36, premium of $4.50 with a break even of $40.50
The lowest break even of the these three is the lowest strike price @ $34 but the volume is higher in the other two contracts, implying that people are more interested in these contracts.
Can you explain the rationale behind the traders choosing high break even calls which are closer to the current market price as compared to the lowest strike price?