How do you screen for options ?

Discussion in 'Options' started by Sekiyo, Feb 6, 2025.

  1. Matt_ORATS

    Matt_ORATS Sponsor

    We don't have change in OI as a stock scanner input but I requested adding it.
    We have OI in our API:
    upload_2025-2-6_19-4-51.png

    And by option:
    upload_2025-2-6_19-6-9.png
     
    #11     Feb 6, 2025
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  2. Cabin1111

    Cabin1111


    How do you screen for options??

    That's what you said...Right?

    My way is one of the strangest out there. Value investor here...I do very few covered calls now.

    I will look for my company that I think is over valued...Priced incorrectly! Yeah, I could take the profit, but I basically want to hold over the years.

    What I did yesterday and today...YUM (Pizza Hut, Taco Bell, KFC) earnings came in very good. The stock shot up yesterday (maybe some covering)...

    Sold a CC today for the Jan 26 $170. Got $225. for the option...

    Yes, much of their market is over seas...But the US is still a big piece of their profits.

    I am reading about not only the chicken (egg) issues, but beef herds are at historic lows in the US. I'm thinking...What will they serve?? Except for pork there is nothing...Even turkeys are effected.

    So basically I look for over reactions to good earning. I try to gain small profits for cash flow.

    A totally different thought process than 99% of the traders out there...

     
    Last edited: Feb 7, 2025
    #12     Feb 7, 2025
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  3. ironchef

    ironchef

    Personally ... as a call & put buyer ...

    I am a stalker.
     
    #13     Feb 10, 2025
  4. Matt_ORATS

    Matt_ORATS Sponsor

    Here's a scan on YUM for short calls. I would limit the smoothed theo to 2%+-
    Then I would look for a distribution expected value edge and forecast edge weighting with a reward:risk and probability of profit all weighted together.
    In this case the Dec 175c $2.20 is theoretically best:
    upload_2025-2-11_9-25-13.png

     
    #14     Feb 11, 2025
  5. Cabin1111

    Cabin1111


    This is just me...A manual trader.

    I don't like options in December for a few reasons.

    1. Larger volume (triple witching)...The market may make large moves, then settle back at the end of the year.

    2. Long and short term gleaning of profits and losses. See above...

    3. My emotions will get caught up into the expiration date. Do I buy back?? Have I over paid to buy back? What if I buy back and the stock drops or rises 5%?

    I am willing to have my options get called away...A given.

    I try not it over think my moves in Dec...

    PS More Jan options are leaps. Traders may be able to read the tea leaves better than a Dec option...
     
    Last edited: Feb 11, 2025
    #15     Feb 11, 2025
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  6. Matt_ORATS

    Matt_ORATS Sponsor

    Understood. You can still scan on open interest, how wide the market is, and how wide as a percent.
    upload_2025-2-11_16-46-17.png
     
    #16     Feb 11, 2025
  7. VOLdemort

    VOLdemort


    ET. You structure delta fading whatever the pol-regulars on ET are doing.
     
    #17     Feb 12, 2025
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  8. VOLdemort

    VOLdemort

    The guy is trading one lot CCs.
     
    #18     Feb 12, 2025
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  9. Cabin1111

    Cabin1111


    HEY, sometimes I do two!!

    I'm a different puppy than most people...

    69 year old...Supplementing income.

    Like that 80+ year little old lady, going to the bank to renew her $100,000. CD. It's valid and appropriate...But very boring!!

    Like watching paint dry...
     
    #19     Feb 12, 2025