Delta Strike Selection
The Delta method selects an option strike based on the delta of the contract. Delta measures how much the option’s price is expected to change for every $1 movement in the underlying asset. A higher delta (closer to 1) means the option price moves more closely with the underlying asset.
Example:
If you set delta to 0.30, the auto trader will pick a strike with a delta of approximately 0.30. This is a common strategy for options sellers, as options with lower delta are further out of the money and have a lower chance of being assigned.
When to use: Delta-based selection is great for traders who want precise control over how sensitive the option is to the underlying asset’s price movement.