How to Find Deep OTM Options with High Probability of Profit

Deep out-of-the-money (OTM) options can offer explosive returns, but most expire worthless. Learn how our AI-powered Options Scanner identifies the ones with real potential.

The Problem with Deep OTM Options

Deep OTM options are cheap for a reason — they require the stock to make a significant move before expiration. Statistically, most of these options expire worthless.

But here's the thing: when they do hit, the returns can be 10x, 50x, even 100x your investment. The key is finding the ones with a realistic chance of success.

Our AI Methodology

Hack Trade AI's Options Scanner uses a multi-factor analysis to score every option:

1. Historical Volatility Analysis

We calculate the stock's average daily move over the past 60 days. If a stock typically moves 2% daily, expecting a 10% move in a week is unrealistic.

2. Risk-Adjusted Target Move

Based on volatility and your selected risk level (Conservative, Moderate, Aggressive, YOLO), we calculate a realistic target price range.

3. Greeks-Based Probability

We use Delta as a proxy for probability. An option with 0.30 delta has roughly a 30% chance of expiring in the money. We favor options with reasonable probability.

4. Volume and Open Interest

High volume and open interest indicate liquidity and institutional interest. We boost scores for options with unusual activity.

5. IV Percentile

Buying options when implied volatility is low (below the 50th percentile) gives you better odds. We factor in IV rank in our scoring.

The Final Score

Each option receives a score from 0-100 based on all factors. The scanner returns the top-scoring options that match your criteria.