What Is the Best Delta for Selling Covered Calls?

There’s no one-size-fits-all, but most traders target delta values between 0.20 and 0.40. This range offers a good balance between collecting decent premium and managing assignment risk.

Delta is a Greek that represents two key things:

• Probability of assignment: A 0.30 delta option has ~30% chance of finishing in the money.

• Price sensitivity: A 0.30 delta call will increase ~$0.30 per $1 move in the underlying stock.

🎯 Pros and Cons by Delta Range:

DeltaAssignment RiskPremiumIdeal For0.20LowSmallConservative traders who want to keep shares0.30MediumModerateBalanced approach with regular income0.40+HighLargerAggressive traders willing to sell stock

🤔 What Should You Use?

Ask yourself:

• Do I want to hold the stock long-term?

• Am I selling monthly or weekly?

• Is my goal consistent income or capital gains?

Higher deltas are best if you’re OK with your stock being called away. Lower deltas are better for those collecting income passively.

🧮 Try our Options ROI Calculator and test different deltas and expirations. See how premium, ROI, and assignment risk change in real time.