The $ OTM method selects a strike based on a specific dollar amount out of the money (OTM). Out of the money means the strike price is further from the current price of the underlying asset, reducing the likelihood of assignment for sellers.
If the current price of the underlying stock is $100 and you set $50 OTM, the auto trader will pick a strike price that is $50 below (for puts) or above (for calls) the current price, at $50 OTM.
When to use: Use this method if you want to control the strike selection by specifying a fixed dollar distance away from the underlying asset price.
