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The Best Delta for Selling Put Options For You (Income vs Risk)

The Smart Option Seller

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What’s the best delta to use when selling put options?

Delta can be one of the most important tools options traders will use.

But, pick the wrong one, and you may be taking on far more risk than you realize… or leaving too much income on the table.

In this video, I break down how to use delta to choose proper put option strike prices (for you), and how to think about the trade-off between income and risk when selling put options.

✅ We’ll cover:
• What option delta really represents
• Why higher delta = more income (but more risk)
• How lower delta improves probability of not being assigned (but reduces income)
• How to think about delta when selling put options in terms of your feelings about the stock
• A practical, real-world approach to using delta when generating income when selling put options.

🔗 Mentioned in the video:
✅ FREE options trading e-book: https://bit.ly/4fezMqw
✅ 5-Part Video Series - Sell Put Options Like A Pro: https://bit.ly/3uDGhOt
✅ Flagship Put-Option Selling Newsletter: https://bit.ly/3Ec4UmV
✅ Flagship Put-Option Credit Spread Newsletter: https://bit.ly/3sqsslq
✅ One-On-One Coaching Service: https://bit.ly/3Yp5De5
✅ Know Your Odds! Probability Calculator: https://bit.ly/3qMd95P

🔗 Helpful resources below --
Smart Option Seller website: https://www.smartoptionseller.com/
Ride The Coattails Of Warren Buffett (A Best-Seller!) - https://bit.ly/3L0cMtY

Option Scanners:
Option Samurai - https://bit.ly/3M7SIYu
Option Alpha - https://bit.ly/4cDb1Q9
ORATS - https://bit.ly/4elOQ22

Great books:
(Affiliate links are used when appropriate and I may earn a commission!)
Get Rich With Options (My Book!) - https://amzn.to/3IWs1F4 (Amazon)
7 Chart Patterns That Consistently Make Money - https://amzn.to/3WKa2rb (Amazon)
Charting Made Easy - https://amzn.to/45Jr2Se (Amazon)
Options As A Strategic Investment - https://amzn.to/3XuiY45 (Amazon)
Option Volatility & Pricing - https://amzn.to/44YOn1H (Amazon)
Gone Fishin' Portfolio - https://amzn.to/4igXfFD (Amazon)

Broker Resources:
Interactive Brokers - https://bit.ly/3HlbSaM
Tradier - https://bit.ly/44qQxJh

Great websites:
Finviz - https://bit.ly/3N4umyM
Market Chameleon - https://bit.ly/3JsBLqM
Barchart - https://bit.ly/3NI18Gh
Option Strat - https://bit.ly/46038l7
Trading View Charting - https://bit.ly/3s1aXsk

Full list of other helpful links - https://bit.ly/3EeoUWo

Twitter: Twitter: smartoptseller
Facebook: Facebook: smartoptionseller

DISCLAIMER: This video is for educational purposes only and should not be construed as financial advice or a recommendation to buy or sell any security or investment. Consult with a professional financial advisor before making any investment decisions.

DISCLOSURE: Some of the links in this description lead to products & services I regularly use and think you might find helpful. Wherever possible, I use referral links, which means if you click one of the links in this video or description and make a purchase, I may receive a small commission or other compensation.

As I'm part of the Amazon Associate program, I earn from qualifying purchases.

20 Comments

@LeeLowell Creator 7 months ago (edited) Pinned

If you found this video helpful, give it a thumbs up, leave a comment, and subscribe to the channel. Don't forget to grab our free e-book: https://bit.ly/4fezMqw

@PittwaterMowing 4 months ago

Thanks Lee your a great teacher you explain everything very clearly in your option vids

@harrycahn1616 8 months ago

Hi Lee, Thank you for another great video covering Delta and your probability calculator which is I use on every trade myself. Listening to your training on delta supports that I do on all my trades to keep me successful.

@steves7053 12 days ago

Good video Lee. I think the more novice investor would have benefitted if you would have covered (briefly and conceptually) how these two stocks have different volatilities. And by shear virtue of the fact that the share price is so vastly different. My whole options plan revolves around selling OTM puts at 20-25 (or so) Delta. If I get close to assignment, I will roll them down until they either expire or I have to buy them at a loss. My batting average for the year so far is about 30% of all trades expiring OTM without having to roll.

@NaudarFrah 8 months ago

Great explanation!!!

@karlbork6039 1 month ago

The goal is to get assigned that is where the money is.

@PhilippinesRider 8 months ago

If I don't want to buy or sell the underlying, I use the 25ish deltas. If I want something to buy or sell, I use the 35 deltas. We're agreeing on the price to buy or sell and option and the stock... I want more dollars for something I sell. And, I can almost always roll closer to the strike at a later date for additional premium. I enjoy doing that, tightening up my strangle to milk the underlying for a little more upfront cash.

@breakthroughchannel4947 2 months ago

Excellent sir🎉

@ahmedchakir6427 8 months ago

Merci beaucoup pour toutes ces excellentes explications très intéressantes.Respect Monsieur Lee Lowell.

@johnscheidler8842 8 months ago

I Love You. You are A Phenomenal Professor / Teacher.

@RENATOCESCONETTO 2 months ago

You are the best

@haleis4117 8 months ago

Meta stock is almost exactly 10 times the price of Coca Cola so the risk equivalent of buying or selling 1 Put contract on Meta is buying or selling 10 Put contracts of KO not 1 contract hence the Premium of KO has to be multiplied by 1,000 vs 100 for Meta.

@albertomedeiros3872 6 months ago

I'm binge-watching the channel after reading your book "Get Rich with Options," Professor. Congratulations on the content.

@drdontpassone8164 8 months ago

superb

@Zero5DTE 6 months ago

So you're basically comparing 1 contract on a $650 volatile tech stock to 1 contract on a $70 sleepy consumer staple, and calling the first one „way better income“. That's not analysis, that's selective framing to make your „higher premium = better strategy“ pitch look stronger. Normalize it properly (premium % of stock price, premium per dollar of capital at risk, or show equivalent number of contracts for similar risk exposure) and the „Meta crushes Coke“ story falls apart pretty fast. Less hype, more balanced numbers next time would make the video actually useful instead of feeling like an ad for your probability calculator and premium service

@MChristopher11-11 8 months ago

Enjoying your videos and this one on the detailed explanation of the delta. I keep watching your videos since I am somewhat new to options and it can take a minute to get my brain wrapped around the many variables. If you chose to sell an option way OTM would it be more difficult to sell? Who would buy the option at such a low price unless they were very bearish? Thank you

@jefflong1069 8 months ago

Delta is a great tool, but I prefer to look at the price chart.

@PhilippinesRider 2 months ago

If you want the stock but want a discount, use 30 or higher delta..... If you don't want the stock, sell a 20 delta.... I sell puts at 20 delta and sell calls at 30 because I prefer to send out my holdings on assignments. If I NEED to sell off holdings, 40 delta..... sadly.... the videos make it "SOUND" much more complicated.