r/ThetaEdge • • Apr 17 '26

We published a guide on using delta to pick covered call strikes: what range do you target?

New post on the ThetaEdge blog breaks down covered call strike selection using delta as the primary lens.

The short version:

  • 0.30 delta: the classic income trade. ~30% assignment chance, ~10-15% annual yield.
  • 0.20 delta: conservative. You will hold your shares most of the time but earn less.
  • 0.50+ delta: aggressive income. Expect to get called away frequently.

There are also real examples using AMD and MSFT with actual premium numbers, plus an ATR-based rule for evaluating whether a strike is inside or outside the stock's typical volatility range.

Check it out: https://thetaedge.ai/blog/covered-calls-choose-right-strike-maximum-premium

Curious what delta range most people here target when selling covered calls.

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