Decision Practice

Pick the Right Strike

10 scenarios · Intermediate-Advanced

Scenario 1 of 10

0 correct

Calm Market Income on MSFT

VIX is at 14. MSFT trades at $420. You want to sell a CSP for monthly income. The option chain shows: .20 delta ($400 strike) = $1.80 premium, .25 delta ($408 strike) = $2.90, .30 delta ($412 strike) = $3.75.

Which delta do you choose?