Delta 25 Covered Calls
Conservative-moderate strikes · Delta 0.22–0.28 · Live scanner
The 25 delta covered call is one of the most referenced strike selection guidelines in options income strategies. At delta 0.25, roughly a 75% probability the option expires worthless — while still leaving meaningful upside room. Many systematic covered call programs and ETFs target this range. The scanner below filters today's candidates to the 0.22–0.28 delta band.
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Open full screener →Why Delta 25 Is a Popular Covered Call Strike
Delta 25 strikes a practical balance: enough premium to be worth selling, low enough assignment probability to sleep at night. It's the default starting point for many experienced covered call traders who adjust up or down based on conditions.
Move up to delta 30–35 when IV is elevated. Stay at delta 20–25 when bullish on the stock or holding a position you don't want called away.
Frequently Asked Questions
What is the 25 delta rule for covered calls?
Selling at the strike where delta ≈ 0.25 gives you ~75% probability of keeping the full premium. A widely used guideline for conservative-to-moderate covered call income strategies.
Is delta 25 better than delta 30 for covered calls?
Delta 25 is more conservative — lower premium, lower assignment risk. Delta 30 yields more income but with higher assignment probability. Use 25 when bullish on the stock, 30 when neutral.
Do covered call ETFs use delta 25?
Many systematic covered call programs and ETFs target the 25–30 delta range for strike selection, balancing income generation with tracking relative to the underlying.