Covered Call scan in Thinkorswim

Setting up a Covered Call  screener / scanner in Thinkorswim is easy.  If you want to skip the Cash Secured Put and go directly to Covered Calls this is for you.

In TOS desktop open up the Scan tab and delete the 3 stock filters loaded up by defaut.

  • Click on add filter and choose Option then Delta. Min is .25 and Max .35
  • Click on add filter and choose Option then BID.  Min is .20
  • Click on add filter and choose Option then Days to Exp.  Min 1 and Max 7
  • Click on add filter and choose Stock then Vol Index.  Min 50 and Max 80
  • Click on add filter and choose Option then Open Interest. Min is 200
  • Click on add filter and choose Study then Earnings. Does not have Earnings in 7 Bars.

At the top choose scan in All Optionable or Weeklys  and also choose to Exclude Futures.

The above settings will find Call options with premiums between 1-2% in 7 days just slightly out of the money.

You can Adjust the Vol Index to find more or less premium. 25 to 35 will give premiums of  close to .5%

If you have a stock you like to sell Covered Calls on Check its Implied Volatility (Vol Index).  Scanning for other stocks with similar Implied Volatility will give similar % return on Covered Call premium at the same delta.

Covered Call % Indicator.

def Mid =(ask+bid)/2;

def Strike = GetStrike();

def CC = (MID)/(Strike);

AddLabel(!isPut(), AsPercent(CC), color.WHITE);