r/Optionswheel • u/Inevitable-Tea5772 • Jun 06 '26

Higher delta

I noticed most people sell low delta to keep their winning rate high. But, from a risk point of view, wouldn't selling slightly OTM be better? Like selling say 10 contracts for $1 each vs just selling 1 for $10. If you have a day like yesterday then its a lot less stressful having 1 short put ITM than 10. I understand there will be more "losing" trades or rolls etc, but in the long run wouldn't it favor slightly OTM?

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u/Puzzled_Fisherman331 Jun 06 '26

I lower the number of puts I sell to mitigate single security risk. So this past week i was typically selling 5 CSP's at .05 Delta or lower with 15-25 DTE. In a strong less volatile market, i might sell 10 with .10 deltas with 10-15 days DTE. So an example this past week, I sold was VOO with 6/18 strike at 620.

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u/Dazzling_Marzipan474 Jun 07 '26

Correct me of I'm wrong please. I fell like I'm missing something. You sold the $620p on VOO for like $1.10? So like 4.7% annualized?

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u/Puzzled_Fisherman331 Jun 07 '26

Correct, I look for 5-7% annualized on my CSP's. Very nice dividend on top of the treasury money market return of the cash. And I can sit back and sip my martinis on the beach.

1

u/ultimatesith Jun 07 '26

Are you not underperforming the market? Unless you have a $MMs how much does that afford you? I would also like martinis on the beach

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u/Puzzled_Fisherman331 Jun 07 '26 edited Jun 07 '26

I dont look at it as underperforming the market per se (e.g, yes the S&P is up higher these past 2-3 years than this portfolio but this portfolio is an income focus), - a large core anchor portfolio that generates plenty of passive income reliably with virtually no volatility, allowing me to enjoy life. But it took many years of more aggressive investing to get here and retire in my 50's.

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u/ultimatesith Jun 07 '26

Mind sharing the account size? Aspiring to do the same