Choosing the right strike price

Deltais the option chain's estimate of how likely a strike is to finish in-the-money at expiration. Roughly: |delta| ≈ probability of ITM. So a −0.30 put has about a 30% chance of being assigned.

For a cash-secured put (CSP), target −0.30. For a covered call against shares you already hold, target +0.30. Same odds, mirrored side — that symmetry is why the Wheel stays on the rails.

Yield is what you actually get paid — premium ÷ cash secured. A $1.85 premium on a $220 CSP is a 0.84% return in 35 days — annualised, that's roughly 8–9%. The far-OTM strike looks safer but pays a fraction of that.

Breakeven is the line in the sand. For a CSP: breakeven = strike − premium. If you're assigned at $220 keeping the $1.85, your effective cost basis is $218.15 instead of $220. For a covered call: breakeven = strike + premium.

Bid-ask caveat. Liquid names carry $0.05–$0.10 spreads on a 35-DTE option. Anything wider than roughly 5%of the mid price is a warning sign — you'll give back a third of the premium to slippage alone.

IV rank tells you whether option premiums are rich or cheap relative to the last year. It is the dial you turn to decide whether to sell closer to the money or further out.

• High IV rank (> 50%) — premiums are inflated. Sell closer to the spot (target delta ≈ −0.35) and capture the rich premium. Higher assignment odds are the price of admission.
• Low IV rank (< 25%) — premiums are historically cheap. Sell further out-of-the-money (target delta ≈ −0.25) and accept smaller premium for safer assignment risk.

This is the lever the screener pulls behind the scenes — ranking tickers by IV rank first, then nudging the strike window per name to match the regime.