Best stocks to scalp call options

Screening Filters

1. Relative Volume (relative_vol: {'min': '2.0'}):

   • Purpose: To identify stocks with significantly higher trading activity compared to their average volume.
   • Rationale: Scalping strategies rely on liquidity and volatility, and a relative volume above 2.0 indicates that the stock is experiencing heightened interest and activity, which can lead to more predictable price movements and tighter bid-ask spreads—ideal for scalping call options.

2. Optionable Stocks (is_optionable: 'True'):

   • Purpose: To ensure that the stocks returned are eligible for options trading.
   • Rationale: Since the user is specifically looking to scalp call options, it is essential to filter for stocks that have listed options available. This ensures the results are actionable for the user's strategy.

3. RSI Category (rsi_category: ['moderate']):

   • Purpose: To focus on stocks that are not overbought or oversold, as indicated by a moderate RSI (Relative Strength Index).
   • Rationale: A moderate RSI suggests that the stock is not in an extreme condition, which can help avoid unpredictable reversals. This is important for scalping, where traders aim to capitalize on short-term price movements without being caught in a trend reversal.

4. Moving Average Relationship (moving_average_relationship: ['PriceAboveMA5']):

   • Purpose: To identify stocks where the current price is above the 5-day moving average.
   • Rationale: A price above the 5-day moving average indicates short-term bullish momentum, which aligns with the user's interest in scalping call options. This filter helps narrow down stocks that are more likely to experience upward price movements in the short term.

5. Market Capitalization (market_cap: {'min': '1000000000'}):

   • Purpose: To focus on larger, more stable companies with a market cap of at least $1 billion.
   • Rationale: Larger-cap stocks tend to have higher liquidity and tighter bid-ask spreads, which are critical for scalping strategies. This ensures that the user can enter and exit positions quickly without significant slippage.

Why Results Match:

• The filters collectively focus on stocks with high liquidity (relative volume, market cap) and short-term bullish momentum (RSI, moving average relationship), which are key factors for scalping call options.
• By ensuring the stocks are optionable, the screener guarantees that the results are actionable for the user's specific strategy.
• The combination of these filters increases the probability of finding stocks that are suitable for short-term trading while minimizing the risks associated with illiquid or volatile stocks.