---
title: "Target Premium Strike Selection Explained"
description: "When to use Target Premium Strike"
url: https://help.optionsautotrader.com/en/articles/148-target-premium-strike-selection-explained
collection: "Options Auto Trader 101"
updated: 2026-04-18
language: en
---

# Target Premium Strike Selection Explained

When to use Target Premium Strike

## **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.