Setting up a Cash secured put screener/scanner in Thinkorswim is easy. This would be an easy way to get into doing the Options Wheel Strategy and eventually selling Covered Calls.
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 -.30 and Max -.10
- Click on add filter and choose Option then BID. Min is .20
- Click on add filter and choose Option then Days to Exp. Min 3 and Max 60
- Click on add filter and choose Option then Return on Risk. Min 7 and Max 50
- Click on add filter and choose Option then Open Interest. Min is 300
At the top choose scan in All Optionable or Weeklys and also choose to Exclude Futures.
When done you should have something like this.
A thought on configuration:
- Delta between -.30 and -.10 should give close to 70-90% success rate.
- Days to expiration is up to your trading style. Some like to trade weekly expiration only and that’s fine if you don’t mind the gamma risk.
- Return on Risk (ROR) set this according to your risk tolerance. The greater the return the lower your probability of success.
How would I add a filter for stocks under a certain price? Say $100?
Add a Filter for Stock – Last – Max 100 Thanks
thanks, nice filter
Thank You.
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Love the Step by step explanation! Excellent!
I agree.
Thank You. This is great!
Great set up. How do you calculate your ROR?
Thinkorswim does this automatically. ROR = Max profit / Max loss x 100. Max loss = credit received – strike price.
Thanks! I’m almost set up. Is there a way to put in current price of the stock?
Yeah on the box you change from stock to options choose stock and options.
I went to stocks & options box, but the underlying price does not show up. Do I need go to customize and look there? If so, what is it called?
I really appreciate your help!
In the video above at 2:55 choosing stock & options then scan again did not work?
It gives me the full option, but not the underling price…
I have Symbol, Description, Volume, Bid, Ask, Days, Option Delta, & Impl Vol
Scan in weekly, with either Options or Stocks & Options…still no underlying
My current settings
This is Great!! Thanks for sharing.
I am trying to duplicate this in IBKR TWS. Anyone with knowledge on how to do in with them??
Cheers.
This is great. Thank you for sharing. I even clicked a few ads.
Thanks
Assume XYZ is trading for $9 a share. The 8.5 Put has a bid of .13 with only 21 days to expiration. This represents a return on risk of 1.6% or 27% annually. If XYZ in 21 days is trading above $8.5 we would keep our credit received of $13 and do the process over again.
But eventually we will get assigned and someone will put 100 shares of XYZ to us for $8.5
Question : how to calculate above 27% annually ?
If we can collect 1.6% every 21 Days thats (365 / 21 = 17) 17 times per year. 17 x 1.6 = 27% If you want more than 17% collect more premium or use shorter duration. Collecting 1% every week would = 52% per year.
Learning though all this pretty darn cool! Is the spread hacker reliable as well? Or the suggestions it comes up with?
I have not had a chance to try out the spread hacker yet.
Thanks much- great tool, very good of you to share it.
Thanks.
How is this set up done in mobile?
You have to build it in the desktop application. Once saved you can view scan results on a mobile device.
Excellent…thank you!
Would you reverse the Deltas to run this for covered calls, or was that too easy?
Thanks again.
You could try that and then remove the ROR filter. ROR only scans puts.
Thank you for the detailed instructions. Subscribed to your Youtube channel.
Thanks
I dont have the options hacker in my TOS. Is it only available for funded accounts? Thanks!
Are using paper trading or live trading? Some of the indicators are not available in the paper trading account. I’m using the stock hacker not the option hacker.
Yes, I am using a paper trading account since I cannot open a real one in europe. Even when I use the stock scanner, I cannot select “option”. Its not available. Think its because its not a funded account. Thank you anyway!
Thank you so much! Do you have a page or email subscription?
No but I post scans weekly on this website. I also have a Patreon that I’m slowly adding content to. https://www.patreon.com/Options_Guru?fan_landing=true
Does this scan work on weekends? I’m not getting any results with you settings.
Yes I run it every Saturday. TOS could be updating the servers or you need to double check settings.
Hi. Is there a possibility in TOS to filter out options with crazy spreads? Excel+RTD is clear, but just TOS? Thank you.
The best thing I’ve found is to add study filters for option open interest or volume. The options with the best bid ask spreads generally have the most option volume and open interest. Thanks
Hey. Is there a difference or advantage of filtering using delta instead of probability OTM as a filter?
No both will give similar results.