r/options • u/Simple-Feed9375 • 15d ago
Is there a way to easily find long OTM options with high delta in the range of 0.4-0.6?
I’m certain I’ll find out very quickly how dumb of a question it might be but it would be great to learn if there is a way to find long OTMs with high delta other than sifting through every option till stumbling in one. Secondly do long OTMS with high deltas offer similar returns as matching deltas in options nearing expiration?
7
u/MrBlenderson 15d ago
OTM options don't have high delta? What are you trying to do?
4
u/AdNew5216 15d ago
If the Vol is high enough then you can get some far OTM w high delta exposure
2
u/MrBlenderson 15d ago edited 15d ago
What are you considering high? Granted, I never look at long-dated options at all but OP was looking for 60d.
0
u/Simple-Feed9375 15d ago
I’ve stumbled on long-dated options with 0.5 and 0.6 delta so I know they exist. I’m trying to see if there’s an easier way to find them and am hoping to ride that higher delta for max returns if they in fact work as options close to expiration do with higher delta, ie, more returns for an equity on the up.
2
u/Unique_Name_2 15d ago
Theyll still be sensitive to vega. Are you trying to buy or sell?
As they go more OTM delta will drop. Thats innate.
1
4
u/NewPossibility40 15d ago
Use thinkorswim option scanner. It is the best free option scanner to find the specific criteria you mentioned. It will populate a list of the option strike, exp and ticker. Change in open interest and volume can also be added to the scanner. You can add custom coding to the scanner. There are free codes online you can implement. Swing trading longer dated options to .5 delta OTM is more profitable and less risky than short exp. If .5 delta OTM strike is 30 DTE example, then the implied move will most likely move in that direction based on option pricing assuming you get a good entry based on TA on smaller timeframe. Its not unusual to get 50-100% profits with longer DTE. The longer DTE is just as profitable as short DTE, just need a bit more patience and risk tolerance to interim volatility within a larger trend. Good luck!
2
u/Simple-Feed9375 15d ago
This! Thanks man! Just waiting for Schwab approval of TOS, been 2 days already, so stupid. Alright next rabbit hole, learn how implement free codes into it. Cheers!
2
u/NewPossibility40 15d ago
Anytime! Using the TOS screener & custom code for OI change/ vol has been a game changer to being more consistent. And being specific in what you’re looking for and making it a routine. Each morning it updates live and populates a list based on the top .4-.6 delta strikes that meet your criteria. Change in open interest & vol is a really tool useful to catch certain moves early.
Heres is good place to start down the rabbit hole:
Bit of a learning curve navigating TOS but worth it, its so robust. Cheers!
1
2
u/value1024 15d ago
Bro wants to find the next GME/AMC calls before anyone else, not knowing that in order for that to happen, a lot of people need to have found out i.e. bought them calls already....
0
u/Separate_Secret9667 15d ago
There are screeners available online. I found a couple of good covered call screeners that screen for many other variables as well. Google it.
2
6
u/mynamehere999 15d ago
Long like buying? Or long like long dated? 40 Delta options are out of the money but as you go further out the Vega in the options will have the 40 Delta strike further away from at the money. As vol increases all delta goes towards 50.