The Best Strike (Delta) and DTE for Selling Puts (A Clear Framework)
Options Trading IQ
26,292 views
Two questions I get asked more than anything else from put sellers: which strike should I choose, and how far out in time should I go?
Get these wrong and you're either collecting pennies for too much risk, or leaving significant premium on the table.
In this video, you'll learn a clear, repeatable framework for both — with real Nvidia examples and the exact adjustments to make based on IV environment.
📈 What You Will Learn:
Understanding Delta as a Strike Selection Tool:
✅ What delta actually tells you as a put seller — and the two things it measures
✅ The full spectrum mapped out: 10-20 delta vs 20-30 delta vs 30-45 delta
✅ Why neither high nor low delta is automatically better — it depends on your goals
✅ Why a 30 delta put on Nvidia sits 6% out of the money but only 3.5% on Apple
Real Nvidia Examples Across the Delta Spectrum:
✅ 17 delta: $260 premium, 15.83% annualised, 13% margin for error
✅ 30 delta: $505 premium, 29% annualised, 9.4% margin for error
✅ 46 delta: $905 premium, 51% annualised, 6.5% margin for error
✅ How to use the cash secured put calculator to compare trades side by side
DTE — Finding the Theta Sweet Spot:
✅ Why options decay is not linear — and what that means for timing your trades
✅ Sell too far out: theta is tiny, you wait too long to collect
✅ Sell too close: theta is fast but no time to adjust if the trade moves against you
✅ 7 DTE vs 95 DTE side by side — annualised return vs margin for error
✅ Why 30-45 DTE is the sweet spot for most traders
Why 20-30 Delta and 30-45 DTE Work Best Together:
✅ Theta is accelerating but gamma risk hasn't kicked in yet
✅ Enough time to roll the position before it goes deep in the money
✅ Roughly 70% probability trade with premium that justifies the risk
✅ The variable most traders miss: adjusting delta based on IV environment
How IV Should Shift Your Entire Framework:
✅ High IV: move down to 10-15 delta — still good premium, much bigger buffer
✅ Low IV: accept lower income, move closer to the money, or don't trade at all
✅ A 30 delta put in low vol is a completely different trade to 30 delta with VIX elevated
3 Strike Selection Mistakes to Avoid:
✅ Always selling the same delta regardless of IV environment
✅ Going too short on DTE and turning put selling into directional gambling
✅ Picking a strike because the dollar amount looks attractive rather than because you'd genuinely buy the stock there
🔗 Helpful Resources:
Option Wheel Tracker Spreadsheet - https://optionstradingiq.com/wheel-tr...
Wheel eBook - https://optionstradingiq.com/wheel
10-Part Iron Condor Course - https://optionstradingiq.com/10-part-...
Options Trading 101 - https://optionstradingiq.com/101-book
OTIQ Best Articles - https://optionstradingiq.com/best-art...
Master Credit Spreads - https://optionstradingiq.com/masterin...
🎥 Related Videos:
Cash Secured Puts Made Easy: A Beginners G...
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💰 Selling Cash Secured Puts on Interactive...
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👍 Like this video if you found it helpful and comment below with your questions or experiences on mastering cash secured puts.
📣 Follow Us on Social Media:
Twitter: https://x.com/OptiontradinIQ
This video is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
Options Trading IQ Pty Ltd (ACN 658 941 612) is a Corporate Authorised Representative (CAR No. 001312737) of Point Capital Group Pty Ltd (ACN 625 931 900), holder of Australian Financial Services Licence (AFSL No. 518031).
#optionselling #optiontrading #sellingoptions
20 Comments
Going to check out some of your other videos now!
45&30
What do you consider high IV where you would move your strikes to the lower Delta? What is the ideal IV?
-have used half cash and get assigned
-accept assignment
-roll half
Do many variables why you might roll or not. Also depends on your bias / news / forecast / stock price / earnings calendar…..
I rarely roll. Sometimes you could be rolling for years or trying to manage done thing that might honestly never recover. Sometimes best thing to do is possibly accept and close for a loss…. Of course depending on risk tolerance / capital / knowledge / stick / environment
I say this as a “veteran ” who use to play 10-20k options weekly…….
i looked on your website and cant find that excel spreadsheet put and covered call calculator. Could you send a link?
Selling puts at 10-20 delta, IVP above ?
20-30 Delta
30-45 Delta
Thx
The Best Strike (Delta) and DTE for Selling Puts (A Clear Framework)
Options Trading IQ
26,292 views
Two questions I get asked more than anything else from put sellers: which strike should I choose, and how far out in time should I go?
Get these wrong and you're either collecting pennies for too much risk, or leaving significant premium on the table.
In this video, you'll learn a clear, repeatable framework for both — with real Nvidia examples and the exact adjustments to make based on IV environment.
📈 What You Will Learn:
Understanding Delta as a Strike Selection Tool:
✅ What delta actually tells you as a put seller — and the two things it measures
✅ The full spectrum mapped out: 10-20 delta vs 20-30 delta vs 30-45 delta
✅ Why neither high nor low delta is automatically better — it depends on your goals
✅ Why a 30 delta put on Nvidia sits 6% out of the money but only 3.5% on Apple
Real Nvidia Examples Across the Delta Spectrum:
✅ 17 delta: $260 premium, 15.83% annualised, 13% margin for error
✅ 30 delta: $505 premium, 29% annualised, 9.4% margin for error
✅ 46 delta: $905 premium, 51% annualised, 6.5% margin for error
✅ How to use the cash secured put calculator to compare trades side by side
DTE — Finding the Theta Sweet Spot:
✅ Why options decay is not linear — and what that means for timing your trades
✅ Sell too far out: theta is tiny, you wait too long to collect
✅ Sell too close: theta is fast but no time to adjust if the trade moves against you
✅ 7 DTE vs 95 DTE side by side — annualised return vs margin for error
✅ Why 30-45 DTE is the sweet spot for most traders
Why 20-30 Delta and 30-45 DTE Work Best Together:
✅ Theta is accelerating but gamma risk hasn't kicked in yet
✅ Enough time to roll the position before it goes deep in the money
✅ Roughly 70% probability trade with premium that justifies the risk
✅ The variable most traders miss: adjusting delta based on IV environment
How IV Should Shift Your Entire Framework:
✅ High IV: move down to 10-15 delta — still good premium, much bigger buffer
✅ Low IV: accept lower income, move closer to the money, or don't trade at all
✅ A 30 delta put in low vol is a completely different trade to 30 delta with VIX elevated
3 Strike Selection Mistakes to Avoid:
✅ Always selling the same delta regardless of IV environment
✅ Going too short on DTE and turning put selling into directional gambling
✅ Picking a strike because the dollar amount looks attractive rather than because you'd genuinely buy the stock there
🔗 Helpful Resources:
Option Wheel Tracker Spreadsheet - https://optionstradingiq.com/wheel-tr...
Wheel eBook - https://optionstradingiq.com/wheel
10-Part Iron Condor Course - https://optionstradingiq.com/10-part-...
Options Trading 101 - https://optionstradingiq.com/101-book
OTIQ Best Articles - https://optionstradingiq.com/best-art...
Master Credit Spreads - https://optionstradingiq.com/masterin...
🎥 Related Videos:
Cash Secured Puts Made Easy: A Beginners G...
The Art of Rolling Cash Secured Puts
💰 Selling Cash Secured Puts on Interactive...
How to Generate Monthly Income from SOFI S...
The 5 Technical Indicators I Check Every D...
18 Months Running The Wheel on TLT: Every ...
6 Steps to Sell Put Options Profitably (21...
100% vs 20% Returns: The Truth About High ...
👍 Like this video if you found it helpful and comment below with your questions or experiences on mastering cash secured puts.
📣 Follow Us on Social Media:
Twitter: https://x.com/OptiontradinIQ
This video is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
Options Trading IQ Pty Ltd (ACN 658 941 612) is a Corporate Authorised Representative (CAR No. 001312737) of Point Capital Group Pty Ltd (ACN 625 931 900), holder of Australian Financial Services Licence (AFSL No. 518031).
#optionselling #optiontrading #sellingoptions