What Delta Should I Use for Covered Calls?

Delta tells you the probability your option will expire ITM. Here's how to choose:

Delta Quick Reference

| Delta | Probability ITM | Best For | 0.5050%Maximum income 0.4040%Aggressive income 0.3030%Balanced approach 0.2525%Standard choice 0.2020%Conservative 0.1515%Keep shares priority | 0.10 | 10% | Almost always keep |

Recommended Delta by Goal

Income Priority: 0.35-0.45 Delta

  • Higher premium
  • More frequent assignment
  • Good for stocks you'd sell anyway

    • Balanced: 0.25-0.35 Delta

  • Moderate premium
  • Keep shares ~70% of time
  • Most popular choice

    • Keep Shares Priority: 0.15-0.25 Delta

  • Lower premium
  • Keep shares ~80-85%
  • For long-term holdings

    • How to Find Delta

  • Open your broker's option chain
  • Look for the "Delta" column
  • Find strikes where delta matches your target
  • Or use OptionsPilot's strike finder

    • Delta Changes Over Time

    Delta isn't static:

  • Stock rises: Delta increases (ITM more likely)
  • Stock falls: Delta decreases
  • Near expiration: Delta moves faster (gamma)

    • My Recommendation

    For most covered call sellers, 0.25-0.30 delta provides the best balance of income and probability of keeping shares.