Screening Filters & Rationale
market_cap ≥ 5,000,000,000:
- Purpose: Focus on large, established companies.
- Rationale: Larger-cap stocks tend to have deeper options markets and more reliable liquidity, supporting tighter bid-ask spreads for premium-selling strategies.
weekly_average_turnover ≥ 1,000,000:
- Purpose: Ensure the underlying stock trades actively.
- Rationale: Higher share turnover indicates strong trading interest, which supports efficient price discovery and better execution for option trades.
is_optionable = True:
- Purpose: Include only stocks with listed options.
- Rationale: This guarantees that every result can actually be used for option premium strategies like covered calls or cash-secured puts.
option_iv_rank ≥ 70:
- Purpose: Target stocks with relatively high implied volatility compared to their own past levels.
- Rationale: A high IV rank suggests options are currently expensive, increasing the premiums received for selling options.
is_index_component ∈ {GSPC, NDX}:
- Purpose: Limit selections to members of major indices (S&P 500 or Nasdaq 100).
- Rationale: Index components are typically more liquid, better covered, and more stable names, aligning high option premiums with higher-quality underlying stocks.
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.