Hey Traders and Investors!
Let’s get into something today that I’ve been wanting to share for a while—the secret sauce that makes my wheel strategy plays unique. I’m talking about the custom scan I designed to find the most optimal stocks and ETFs to sell cash-secured puts on. This is the heart of my strategy, and after adjusting it to perfection, it’s what helps me stay consistently profitable.
What’s even better? It’s fully automated. My scan refreshes itself every hour, continually providing me with the latest stocks and ETFs that meet my criteria. This allows me to stay on top of the market without having to manually sift through endless data to find a trade and provides me with endless opportunities so let’s dive in!
🛠 How I Built My Custom Scan: Leaving No Stone Unturned
The Wheel Strategy is straightforward, but executing it successfully requires picking the right stocks to play. That’s where my custom scan comes in. I didn’t just throw a few filters together; I spent a good amount of time tweaking and fine-tuning every parameter, ensuring that no detail was overlooked. Here’s what goes into it:
Percentage Change for the Day: I’m always looking for stocks that are moving. This filter helps me catch the stocks with the right momentum, I’m going to try to time it to place my trade on a down day if possible.
Just the Right Amount of Implied Volatility (IV): I want the premium to be as juicy as possible, but I don’t want to take on unnecessary risk. Too much IV means there’s potential trouble ahead, so I dial it into my sweet spot.
Market Cap: Liquidity is king. I only work with highly liquid stocks and ETFs. This way, I know I’ll be able to enter and exit trades smoothly, without crazy spreads eating into my profits.
Return on Risk: This is huge. My scan focuses on maximizing the premium relative to the risk taken. My goal is a potential minimum 10% return in days or less on CS Puts. I will occasionally go out a little further if it makes sense. I realize that weekly CS puts are very popular right now, but I stick to what works for me.
Volume: Just like liquidity, volume ensures I’m in trades that have enough action. It also helps confirm that the stock’s movement is supported by real market participants.
Uptrend Studies: Lastly, I want to be on the right side of the trend. My scan includes technical studies to confirm that the underlying is in a bullish uptrend, giving my trades a higher probability of success of expiring worthless and if I get assigned it will more than likely be due to a short-term pullback in a longer bullish trend giving me the opportunity to reposition the asset.
This scan is the culmination of months of refinement. I didn’t just set it up one day and leave it at that—I've continually adjusted it based on market conditions, personal experience, and the trades I executed.
📈 Tried and Tested: Consistent Profits, No Guesswork
What sets this strategy apart is that it’s tried and tested. I’ve spent many years trading by using this process, and it’s allowed me to grow a significant portfolio while generating a constant income stream through cash-secured puts and covered calls. I’ve seen firsthand how this method works in various market conditions, and it’s the reason I’m confident every time I put out a new Wheel Play.
When you’re selling puts, you want to be working with stocks that give you the best chance of success. That’s why I don’t leave anything to chance. My custom scan ensures that every stock I’m trading is optimized for what I’m trying to do—growing and maximizing profits on my portfolio while limiting risk.
📅 Now Adding a Friday Wheel Play! 🎉
Like I mentioned earlier, I’ve been getting a lot of requests to add another play each week, and I’m happy to announce that I’ll now do another one on Friday in addition to the Monday one and I’ll also be providing step by step updates of how I manage it from begging to end.
Thanks for being part of this journey with me, and as always, I’m excited to keep sharing the results and helping you all make the most of your trading. Here’s to more success and consistent profits! Happy Trading!-ec 🚀💰
*Disclaimer The information in The Options Oracle is my opinion, not financial advice.
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