The Strike Offset OTM method selects a strike that is a specific dollar distance out of the money from a prior strike. This is useful when trading strategies like spreads, where you want the strikes of your options to be a set distance apart.
If you set a $5 Strike Offset OTM, the auto trader will choose a strike that is $5 out of the money from the prior strike above it. Meaning if the first trade leg is picked based on a 30 delta level. Then next trade leg will be $5 OTM from where the 30 delta strike price was picked.
When to use: This method is best for spread strategies where you want to guarantee consistent spacing between strikes, such as credit spreads or iron condors.
