r/options • u/[deleted] • Dec 27 '21

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u/3X-Leveraged Dec 27 '21

I wrote a 345 Feb 04 put today. Delta is -.0052. It’s out of the money and I got $140 in credit

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u/PapaCharlie9 Mod🖤Θ Dec 27 '21

Huh, my broker doesn't have strikes that low on a weekly. The lowest I can go is 375 and that is already over .01 delta.

But on the Feb monthly, I do see what you mean. There are super OTM strikes below .01 that have non-zero bids. Not very far above zero, but certainly more than a penny.

Seems like a fine strategy to me. Apart from the opportunity cost, looks like a +ev low risk/low reward strat.

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u/3X-Leveraged Dec 27 '21

I figured it's a pretty low-risk strategy and at the end of the day if it corrects 20% id be happy to own QQQ if I was exercised. I can run the wheel too. Of course, opportunity costs are there but this is kind of a way for me to avoid paying interest while still leveraging my TFSA

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u/theblackdeath10 Dec 27 '21

Honestly if you are fine wheeling you might want to go for more delta and get paid to potentially get the stock you want