I’m certain I’ll find out very quickly how dumb of a question it might be but it would be great to learn if there is a way to find long OTMs with high delta other than sifting through every option till stumbling in one. Secondly do long OTMS with high deltas offer similar returns as matching deltas in options nearing expiration?
Is there a way to easily find long OTM options with high delta in the range of 0.4-0.6?
byu/Simple-Feed9375 inoptions
Posted by Simple-Feed9375
4 Comments
Long like buying? Or long like long dated? 40
Delta options are out of the money but as you go further out the Vega in the options will have the 40
Delta strike further away from at the money. As vol increases all delta goes towards 50.
OTM options don’t have high delta? What are you trying to do?
There are screeners available online. I found a couple of good covered call screeners that screen for many other variables as well. Google it.
Use thinkorswim option scanner. It is the best free option scanner to find the specific criteria you mentioned. It will populate a list of the option strike, exp and ticker. Change in open interest and volume can also be added to the scanner. You can add custom coding to the scanner. There are free codes online you can implement. Swing trading longer dated options to .5 delta OTM is more profitable and less risky than short exp. If .5 delta OTM strike is 30 DTE example, then the implied move will most likely move in that direction based on option pricing assuming you get a good entry based on TA on smaller timeframe. Its not unusual to get 50-100% profits with longer DTE. The longer DTE is just as profitable as short DTE, just need a bit more patience and risk tolerance to interim volatility within a larger trend. Good luck!