Target Premium
The Target Premium method selects an option strike where the mid price of the option is closest to the price you set. The mid-price is the average of the bid and ask prices for the option.
Example:
If you set the Target Premium to $2, the auto trader will find the strike where the option’s mid price is closest to $2.
When to use: Use this method if you prefer to enter trades based on the option’s price rather than its strike distance. This can be helpful when managing risk/reward based on the premium received.