Directional Delta Take Profit
Setting key
directional_delta_take_profit
Default
0.87
What it does
When the long leg's delta reaches this level, the position is closed to capture gains and avoid gamma and early assignment risk on deep-ITM options. A delta of 0.87 means the option is significantly in the money and the directional edge has been captured.
When to change it
Lower to 0.75 to take profits earlier when the position goes ITM. Keep at 0.87 to match tastytrade's standard for deep-ITM harvest.
Safe range
0.70 (earlier harvest) to 0.90 (let it run deeper ITM).
Example
Long call entered at 0.40 delta. Stock rallies strongly. Long call delta rises to 0.88. Bot closes the position: directional edge captured, assignment risk on the short-side funding spread growing.