---
title: "Strike Offset OTM Selection Explained"
description: "When to use Strike Offset OTM selection criteria"
url: https://help.optionsautotrader.com/en/articles/150-strike-offset-otm-selection-explained
collection: "Options Auto Trader 101"
updated: 2026-05-10
language: en
---

# Strike Offset OTM Selection Explained

When to use Strike Offset OTM selection criteria

## **Strike Offset OTM**

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.

### **Example:**

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.