Support is a price level where a stock has historically found buyers; resistance is where sellers have repeatedly stepped in. These levels give your strike selection a backbone — turning a mechanical delta into a reasoned decision.
Why Levels Beat Pure Delta
A 0.30 delta put tells you about probability, but not about where the strike sits relative to real demand. Selling a put just below a confirmed support level means the stock has to break through actual buyers before it reaches your strike. That's probability layered on price structure.
How We Use Support
- Identify levels where the stock has reversed multiple times.
- Place strikes just below support so the level must break first.
- Avoid selling puts with strikes sitting in thin air above no level.
Where Probability Meets Price
Support and resistance don't guarantee a hold — levels break. But they give you a logical place to defend. When delta, RSI, IV Rank, and support all line up, you're no longer picking strikes by feel. You're anchoring every trade to something real.