I thought I would start presenting some scanners I have found helpful. Here is my first one. It identifies potential near-term options that I can sell for quick turnarounds. Note that I always go through my list and only take trades where I would be fine owning the stock in case the trade goes south.
| Filter | Min | Max | Notes |
|---|---|---|---|
| Option Bid | 0.1 | If the bid isn’t 0.1, the contract costs will eat up too much of the price. | |
| Days to Exp | 15 | Looking for short-term options. If you find some, this will compound well. | |
| Stock Last | 8 | This makes sure the option is a decent % of the stock (because I have to reserve that much cash), and this is the level I play at. | |
| Stock EPS | -0.1 | This makes sure the stock isn’t just oozing money. If I get stuck the stock they have a decent chance of recovery. | |
| Option % out of the money | 1% | This is just to make sure I’m not hitting a stock just because it has an in-the-money option (which gives false triggers for the “option bid” filter) |
