Screening Filters
Market Cap ≥ $5,000,000,000
- Purpose: Focus on larger, more established companies.
- Rationale: Big-cap stocks typically have:
- Deeper options markets (tighter bid/ask spreads, better liquidity).
- More stable price behavior vs micro/small caps, which can be erratic.
This is important when you only have a small amount of capital ($32) because wide spreads and illiquid options can eat a large portion of your potential profit.
Stock Price Between $5 and $15
- Purpose: Target moderately priced stocks to keep option premiums affordable.
- Rationale:
- Options are priced off the underlying stock. Lower-priced underlyings generally mean cheaper option contracts.
- With a $5–$15 stock, it’s easier to find contracts where the total cost (premium × 100 shares per contract) can fit near your $32 budget, especially shorter-dated or out-of-the-money options.
- Very low-priced stocks (<$5) are often riskier and can have poorer-quality options markets, so the lower bound helps avoid penny/OTC-style risk.
PriceAboveMA20 (20-day Moving Average)
- Purpose: Filter for stocks in a short-term uptrend.
- Rationale:
- If the current price is above its 20-day moving average, it suggests positive momentum.
- For an options trade (especially bullish strategies like calls or call spreads), starting with an uptrending stock increases the probability of a favorable move.
- Since you asked for “a good option trade,” this introduces a momentum-based quality screen instead of picking random optionable stocks.
Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, NYSE American)
- Purpose: Limit results to major U.S. exchanges.
- Rationale:
- Stocks on these exchanges generally have better regulation, transparency, and more active options markets.
- This reduces the risk of illiquidity and odd trading behavior that can happen with OTC or foreign exchanges, which is critical when entering and exiting options efficiently “tomorrow.”
One-Month Rise Probability ≥ 55%
- Purpose: Prefer stocks with a statistically higher probability of rising over the next month.
- Rationale:
- While no model can guarantee returns, a one-month rise probability above 55% means the stock has historically or statistically shown a mild bullish edge.
- This aligns with your goal of finding a “good” options trade, since many retail-friendly options strategies (buying calls, call spreads, covered calls) benefit from some upward bias in the underlying.
is_optionable = True
- Purpose: Ensure all stocks returned actually have listed options.
- Rationale:
- You specifically want to “trade options on” the stock tomorrow.
- Many stocks do not have listed options; this filter guarantees every result is tradable via options (subject to your broker and availability).
Why Results Match Your Request
- Your request: “Find one stock from the previous screener results that I can trade options on tomorrow.”
- How the filters address that:
- Option tradability is directly enforced with
is_optionable = True.
- Tradable tomorrow on major U.S. markets is supported by restricting to NYSE, NASDAQ, and NYSE American, where standard U.S. options trade.
- Realistic for a small account is helped by the $5–$15 price range, which tends to produce more affordable option premiums, closer to a $32 budget than very high-priced underlyings would.
- Higher-probability setups are targeted with
PriceAboveMA20 and one_month_rise_prob ≥ 55%, so we’re not just picking any optionable stock, but ones with recent strength and a statistical tilt toward rising.
We do not have a direct filter like “options that cost ≤ $32” or “tradeable tomorrow by expiry date,” so we can’t guarantee every result will have a contract exactly at your desired premium or specific expiry. However, the filters applied are effective for narrowing down to liquid, established, bullish-leaning, optionable stocks in a price zone that is more likely to offer contracts you can realistically afford and trade as soon as the next session.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.