Tutorial 32 of 39•7. Preset Library — One-Click Screens•5 min read
Low Delta Preset: The Conservative Wheel Starter
The Low Delta preset surfaces contracts with delta between 0.10 and 0.20 — the safest wheel zone with high probability of profit.
What this preset does
The Low Delta preset filters for:
- Delta in the 0.10–0.20 range (puts: −0.20 to −0.10)
- Standard wheel DTE
- Reasonable volume
- Liquidity Cleanup on
Translation: contracts with a roughly 80–90% probability of expiring worthless. Premium is smaller but the win rate is higher.
When to use it
- You're new to the wheel and learning the mechanics.
- You want minimal management — these positions usually expire untouched.
- You're sizing up your wheel allocation and want to test the waters first.
A worked example
You're starting with $10,000 and want a low-stress first wheel cycle:
- Open the Put screener.
- Apply Low Delta Put preset.
- Set ticker filter to a name you'd happily own (e.g., AAPL).
- Pick the highest-rated contract.
- Sell one contract.
Expect 80%+ of these trades to expire worthless. The 1-in-5 that gets challenged becomes a learning opportunity (roll, accept assignment, or close).
Trade-offs
| Pros | Cons |
|---|---|
| ~85% win rate | Lower premium per trade |
| Minimal management | Lower annualized return |
| Smaller drawdown | Need more capital for same income |
Where to go next
- Read Delta filter for full coverage.
- Compare with Conservative Wheel preset (similar but adds moneyness).
- Try High Probability preset for the probability-based version.
Frequently Asked Questions
Is low delta the same as low risk?
Lower delta means a lower probability of assignment, but if assignment does happen the loss can still be large because you're closer to the money than you expected. Always size positions you'd be comfortable owning.