Flashcard Set

Strike & DTE Selection

20 cards · Intermediate-Advanced · Rate Easy / Medium / Hard

1 / 20
0 easy0 med0 hard
Tap to reveal

What does a .20 delta on a short put approximately mean for probability of profit?

Answer

~80% chance of expiring OTM -- you pocket the premium about 4 out of 5 times. That's my go-to for big positions and high-VIX environments.

Tap card to flip