Screening Filters & Rationale
Dividend Yield (TTM ≥ 4%):
- Purpose: Focus on stocks with strong income potential through dividends.
- Rationale: High dividend yields provide consistent income, complementing the premium earned from writing call options.
Beta (LowRisk):
- Purpose: Select low-volatility stocks to reduce risk exposure.
- Rationale: Low-beta stocks are less volatile, making them more predictable and suitable for conservative call-writing strategies.
Weekly Average Turnover (≥ $10,000,000):
- Purpose: Ensure sufficient liquidity for smooth trading and option execution.
- Rationale: High turnover indicates active trading, reducing the risk of slippage when entering or exiting positions.
RSI (14) Between 45 and 55:
- Purpose: Target stocks in a neutral momentum range.
- Rationale: Stocks with RSI in this range are neither overbought nor oversold, reducing the likelihood of sudden price swings.
Price Above 200-Day Moving Average:
- Purpose: Focus on stocks in a long-term uptrend.
- Rationale: Stocks trading above their 200-day moving average are generally considered to have strong upward momentum, aligning with stable call-writing strategies.
Optionable Stocks Only:
- Purpose: Ensure the stock has an active options market.
- Rationale: Optionable stocks are necessary for implementing call-writing strategies effectively.
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.