Screening Filters & Rationale
Dividend Yield (TTM) ≥ 4%:
- Purpose: Focus on stocks or ETFs with strong income potential.
- Rationale: Higher dividend yields provide consistent cash flow, which complements covered call strategies.
Market Cap Category: Large:
- Purpose: Target large-cap companies for stability and liquidity.
- Rationale: Large-cap stocks are less volatile and more reliable for covered call strategies.
Beta: LowRisk:
- Purpose: Minimize exposure to high volatility.
- Rationale: Low-beta stocks reduce risk, aligning with conservative covered call strategies.
Weekly Average Turnover ≥ 10,000,000:
- Purpose: Ensure high liquidity for ease of trading.
- Rationale: High turnover ensures tighter bid-ask spreads and better execution for options trading.
P/E Ratio (TTM) ≤ 15:
- Purpose: Focus on undervalued or fairly valued stocks.
- Rationale: Lower P/E ratios indicate potential for stable returns and reduced downside risk.
Is Optionable: True:
- Purpose: Ensure the stock or ETF supports options trading.
- Rationale: Covered call strategies require the underlying asset to have an active options market.
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.