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What delta should I sell puts at?

A common rule of thumb is a delta between 0.20 and 0.30. That's far enough below the price to give some cushion, close enough to collect a premium worth having, and it means being assigned roughly one time in four. It's a starting point, not a law.

Options guide · 7-minute read · Updated 2026-10-26

The short answer

Most people who sell cash-secured puts for the wheel strategy start somewhere between 0.20 and 0.30 delta. Within that range:

• 0.20: more cushion, smaller premium, assigned about 1 time in 5.
• 0.30: less cushion, bigger premium, assigned about 3 times in 10.

Below 0.15 the premium often isn't worth the cash you tie up. Above 0.35 you're close to just buying the stock, with the upside capped. The middle is popular because it's a fair trade between those two.

What delta tells a put seller

Delta is on every Options chain. For a put it's shown as a negative number, but sellers usually just say "0.25". It means two things at once:

1. How much the put moves per $1 in the stock. A 0.25-delta put gains or loses about 25 cents when the stock moves $1.
2. Roughly the chance the put finishes in the money. 0.25 is about 1 in 4, as the market prices it today.

The second meaning is why it's used to pick strikes. The chance is an estimate, and it moves every day. Options Greeks explained covers delta alongside the others.

The trade-off at each delta

Strike and premium numbers are illustrative; the real ones depend on the stock's Implied volatility. The shape is always the same: more premium, less cushion, more assignment. There is no delta that gives you both. See 20-delta vs 30-delta puts for the two most common choices side by side.

A worked example (an illustration, not a trade idea)

A made-up stock, XYZ, trades at $50. You compare two 30-day puts:

• 0.20 delta, $45 strike, $0.80 premium → collect $80, set aside $4,500.
• 0.30 delta, $47 strike, $1.30 premium → collect $130, set aside $4,700.

At $38 both sellers own a losing position. The 0.30 seller collected $50 more and lost $150 more. The extra premium bought a worse entry price, which is always the deal. Delta doesn't protect you from a big drop. It only sets how far the stock can fall before the drop is yours.

When the rule of thumb fails

• Right before earnings. Delta is priced for a normal month. An earnings gap can turn a 0.20 put into a deep-in-the-money one overnight.
• After a volatility spike. Premiums look huge at every delta. The cushion looks big too, but the market is telling you the stock can move that far.
• On a stock you don't want. A 0.10 put on a stock you'd hate to own is still a promise to own it. Delta doesn't change what you're buying.
• In a bear market. The "1 in 4" spreads out in calm times and clusters in drops. See how often do cash-secured puts get assigned?

How to pick yours

Start by picking the stock and the price you'd be glad to pay. Then look at what delta that strike has. If it's in the 0.20 to 0.30 range, the premium is probably worth the trade. If it's 0.05, the premium won't be worth the cash tied up. If it's 0.45, you're not getting a discount at all.

The strike comes first; the delta confirms it. The same logic in the other direction is on what is a good premium for a covered call? And if you're deciding which side to start on at all: covered calls or puts?

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