Video on Selling Deep out of the Money Options to Increase Odds

  1. Hi Michael,
    thanks again for your great guidance!
    My trading plan is based on selling options with a delta of 15 (-15) where I receive premiums between 400 and 600 USD on average. Would you say I should rather try selling a multiple number of options with a delta of 5 (-5) with a lower premium? (e.g. 4 of those options with a premium between 100 and 150 USD each). Do you have any experience or even backtests which would be more profitable in the long run?
    Thanks a lot and best regards,
    Thomas

    • Michael Gross Says:
      August 9, 2017 at 2:49 pm

      Thomas,

      Delta is only one factor we consider when selecting an option to sell (and not always the most important). That being said, while we tend to seek out slightly lower delta and/or slightly higher premium, your current plan sounds like it is on track.

      Best of luck in your trading.

      Regards,
      Michael

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