Cash secured put screener/scanner

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.

 

 

42 thoughts on “Cash secured put screener/scanner”

  1. Pingback: Cash Secured Put Scan for week ending Feb 12 Weeklys - Options-Guru

  2. 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

  3. 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 ?

    1. 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.

      1. 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!

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