You are right and it is a safer play, as most options expire worthless. Personally I went out of the money (OTM) for a bigger return, but sized to go to zero if wrong. So smaller position than if in the money (ITM)

I also made a typo, most of that option cost is intrinsic value at the current share price. 7.87 - $3.00 = $4.87  (Not $3)