Screening Filters & Rationale
Market Cap ≥ $20 billion:
- Purpose: Focus on large-cap stocks for stability and liquidity.
- Rationale: Large-cap companies are generally more stable and have sufficient trading volume, making them suitable for covered call strategies.
Dividend Yield (TTM) ≥ 2.5%:
- Purpose: Target stocks with attractive income potential.
- Rationale: Higher dividend yields provide additional income, complementing the premium earned from selling covered calls.
Beta (Moderate Risk):
- Purpose: Select stocks with moderate volatility.
- Rationale: Moderate beta ensures a balance between price stability and potential for premium generation in options trading.
Optionable Stocks:
- Purpose: Ensure the stock has an active options market.
- Rationale: Stocks must have options available to execute covered call strategies effectively.
Option IV Rank ≥ 20:
- Purpose: Focus on stocks with relatively higher implied volatility.
- Rationale: Higher IV rank increases the premium received from selling calls, enhancing income potential.
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.