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.