---
title: "% OTM Strike Selection Explained"
description: "When to use % OTM Strike selection criteria"
url: https://help.optionsautotrader.com/en/articles/145-percent-otm-strike-selection-explained
collection: "Options Auto Trader 101"
updated: 2026-05-05
language: en
---

# % OTM Strike Selection Explained

When to use % OTM Strike selection criteria

## **% OTM (Percentage Out of the Money)**

The **% OTM** method selects a strike that is a specific percentage out of the money, based on the current price of the underlying asset.

### **Example:**

If the current price of the underlying stock is **$200** and you set **10% OTM**, the auto trader will select a strike that is 10% away from the current price. For a **put option**, this would be **$180** (10% lower), and for a **call option**, it would be **$220** (10% higher).

-   **When to use**: This method is useful if you prefer to keep your strike selection relative to the current price, regardless of market fluctuations.