Delta 35 Covered Calls
Moderate-aggressive strikes · Delta 0.30–0.40 · Higher premium, higher income
Delta 35 covered calls sit in the higher-premium tier of covered call strategies. At 0.30–0.40 delta, you're capturing significantly more premium than at delta 20–25 — but with roughly a 35% chance the option finishes in-the-money. Works well for neutral market outlooks, stocks you'd be comfortable selling at the strike, and high-IV environments.
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Open full screener →When to Use Delta 35 Covered Calls
Delta 35 is ideal when you're neutral-to-slightly-bearish on the near-term direction of a stock you already hold. More premium up front, but your shares get called away roughly 1-in-3 times.
For long-term holds you don't want disrupted, stick to delta 20–25. For positions you're actively managing or happy to sell, delta 35 maximizes income.
Frequently Asked Questions
Is delta 35 too aggressive for covered calls?
Not necessarily. Delta 35 is appropriate for neutral-outlook situations, high-IV environments, or positions you'd be happy to sell at the strike. It generates 20–60% more premium than delta 25.
What is the assignment probability at delta 35?
Approximately 35% — roughly 1 in 3 contracts will be exercised. The flip side is 65% probability of expiring worthless and keeping the full premium.
When should I choose delta 35 over delta 30?
Choose delta 35 when IV is elevated and the extra premium justifies higher assignment risk, when you're neutral on near-term direction, or when implementing the Wheel strategy where assignment is part of the plan.