Screening Filters
monthly_average_dollar_volume ≥ $2,000,000
- Purpose: Ensure the underlying stocks are liquid and actively traded.
- Rationale:
- Higher dollar volume usually means tighter bid–ask spreads and better execution, both in the stock and its options.
- For a beginner buying long calls/puts, illiquid names can make it hard to get in/out at fair prices, so this filter reduces that risk.
moving_average_relationship: PriceAboveMA20
- Purpose: Focus on stocks in a short‑term uptrend.
- Rationale:
- Price above the 20‑day moving average signals recent positive momentum.
- This is especially useful when looking for long call candidates, since a call benefits from rising prices.
- Even if you later consider puts (e.g., after a trend reversal), starting from strong, actively trending names tends to give cleaner technical setups than choppy, directionless stocks.
sector: Technology / Software & IT Services / Technology Equipment
- Purpose: Restrict results to the tech space, as requested.
- Rationale:
- You specifically asked for an options idea in the tech sector.
- These three categories capture the core of listed tech: broad tech, software/cloud/IT, and hardware/equipment names.
- Tech stocks also tend to have meaningful price swings, which is important when you’re buying options (you need movement to overcome time decay).
list_exchange: XNYS, XNAS, XASE (New York Stock Exchange, Nasdaq, NYSE American)
- Purpose: Limit to major U.S. exchanges.
- Rationale:
- Stocks on these exchanges generally have better regulation, transparency, and liquidity.
- Options on major‑exchange names usually have more volume and open interest, making them more suitable for a new options trader.
is_optionable: True
- Purpose: Only show stocks that actually have listed options.
- Rationale:
- You’re looking for a long call or long put, so the stock must have tradable options.
- This filter removes any tech stocks that don’t have an options chain, keeping results directly actionable.
option_iv_rank: 20–70
- Purpose: Target stocks whose options have moderate implied volatility relative to their own past.
- Rationale:
- IV Rank < 20: options are historically cheap, but often because the stock isn’t moving much—bad for a long option buyer who needs movement.
- IV Rank > 70: options are historically expensive, often due to events (earnings, major news) and carry more “vol crush” risk after the event—dangerous for a new trader.
- Keeping IV Rank between 20 and 70 aims for a balance: enough volatility for movement, but not so high that you hugely overpay for time premium.
Why Results Match Your Request
- The sector filters ensure you only see tech-related stocks, in line with your desire for a tech long call/put.
- is_optionable guarantees every result actually has options you can buy.
- Liquidity filters (dollar volume + major exchanges) make the underlying and its options more practical and safer to trade, especially for a first options trade.
- PriceAboveMA20 steers you toward stocks with recent positive momentum, giving a more natural starting list for potential long call ideas.
- IV Rank 20–70 focuses on names where options are neither extremely cheap nor extremely expensive, which is a sensible range for a beginner buying options.
Note: None of these filters can guarantee a “successful” trade; they’re designed to improve the quality and tradability of the candidates so you can then apply further analysis (chart, fundamentals, catalyst, risk size, and time frame) before choosing a specific long call or put.
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.