Expected Move OTM Selection Explained

When to use Expected Move OTM strike selection criteria

Expected Move OTM

The Expected Move OTM method selects a strike price that is $X out of the money where $X is the expected move of the asset at the desired DTE. You can pick between .5X - 3X the expected move.

Example:

If you set a 1X Expected Move OTM, the auto trader will choose a strike that is 1 x Expected Move out of the money based on the current price.

  • When to use: This method is best for strategies that revolve around the expected moves