Strike selection on the option chain

Sun, 21 Jun 2026 00:00:00 +0000

Strike selection is the choice of which option strike to trade, made by weighing the strike’s delta and its implied probability of expiring in-the-money, its liquidity as shown by open interest and volume, the risk-reward of the position, and the tradeoff between in-the-money, at-the-money and out-of-the-money moneyness . On Zerodha it is done by reading the Kite option chain, which lists every listed strike with its open interest, volume, implied volatility and, in the Greeks tab, its delta and the other Greeks. The strike a trader picks fixes the cost, the leverage, the probability of profit and the risk profile of the whole position.

Strike Selection on WebNotes

Strike selection on the option chain