My Trading and Risk Management Philosophy:

I select strikes using two tools:

1. Technical Analysis
2. Probabilities

1. TA- In the case of bull put spreads, I look for support points and lows within the past 52 weeks and start with strikes outside of the range.

2. I use simple models for probability calculations and look for strikes with around 90% or better chance of expiring worthless.

My goal here is to simply collect premium month to month. Using OTM put and call spreads is a way I can do it without predicting the market for the month. In any given month, the market can move higher, sideways, or significantly lower and I still have a profit. In my view I am trading without concern over market direction except for a major crash lower.