I tend to focus more on the credit received as a percentage of the strike price. I am targeting .5 percent (half of one percent). The delta seems to take care of itself at that strike level. In some cases, I may get more than that percent three-quarters of a percent. Much more than that and I may be taking on too much risk. Having said all that, if I go back and look at what the delta was at the strike level where I got in, it would most likely be less than 20.
Do you have a delta you like when you are first putting on the naked put to open the position?
I tend to focus more on the credit received as a percentage of the strike price. I am targeting .5 percent (half of one percent). The delta seems to take care of itself at that strike level. In some cases, I may get more than that percent three-quarters of a percent. Much more than that and I may be taking on too much risk. Having said all that, if I go back and look at what the delta was at the strike level where I got in, it would most likely be less than 20.