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Covered Calls and Cash Secured Puts


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Hey all, not a baccarat post but just something I wanted to share with my friends on BTC for a while.

My dad trades Cash Secured Puts and Covered Calls on lower priced stocks. A couple of years ago, he asked me to help him find securities in his price range that may be good options trading candidates. I built a custom scan on the Think or Swim trading platform and post the results to Google Sheets (link below). It's something I already do for my dad so I just thought I'd share the data. If you do this kind of trading, you probably have your own sources of information, but hey, another source never hurts huh?

Covered calls and CSPs can be a decent options strategy for a small trading account because it's based off an ownership position in a security. Google it, do some research if you don't know about them and are interested.

So basically, the scan identifies stocks under $15.00, with high option trading volume, option premium > .20 cents and orders them from the highest premium to lowest.

The caveats...

1. I update this on my schedule and will continue to do so. Mostly weekly but sometimes I skip a month.

2. Second, this is only an information source, these are not recommendations, all trades are your responsibility.

 

Good luck, happy trading - Here is the link to the sheet

https://docs.google.com/spreadsheets/d/1ZSq7I59JFAop-9QGlXx2g9LvJWSXfRfXLWkrxj3ugMo/edit?usp=sharing

Edited by XDN
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Thanks Eric...very interesting!

Years ago, I attended a "seminar" on how to trade equities and at the end, they were selling their software that filtered out the "best" buying and selling opportunities.  They wanted A LOT of moola so I went home and created a spreadsheet that basically did the same thing.  I had to enter everything by hand so I didn't pursue that...but in my research, I found a company that has an amazing filtering algorithm and so I subscribed to that service.  It's called StockFetcher and is very robust.  Anyway, I've been interested in Options for many years and will check out your spreadsheet.

Mike

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Posted (edited)
28 minutes ago, mookie said:

Thanks Eric...very interesting!

Years ago, I attended a "seminar" on how to trade equities and at the end, they were selling their software that filtered out the "best" buying and selling opportunities.  They wanted A LOT of moola so I went home and created a spreadsheet that basically did the same thing.  I had to enter everything by hand so I didn't pursue that...but in my research, I found a company that has an amazing filtering algorithm and so I subscribed to that service.  It's called StockFetcher and is very robust.  Anyway, I've been interested in Options for many years and will check out your spreadsheet.

Mike

Interestingly... ThinkOrSwim is an amazingly flexible trading platform that lets you build your own scans and use other scans people have written. About 3 years ago, I opened an account with them and dropped $50 in it just to have access to the scan tools. If I ever want my $50 back I can just close the account so......free in a way :)

Google sheets has a formula you can use to get the current stock price. Just plug a symbol into a cell, use the formula to point at that cell and viola' current prices...free.

I use their formula to get name and price like this (the rest of the info I copy in from the TOS scanner.)

 

image.png

 

image.png

 

 

 

Tutorial Link

https://www.howtogeek.com/449743/how-to-track-stocks-with-google-sheets/

 

image.png

Edited by XDN
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That's good to know.  The thing I always run into though, is sorting through the "possible" candidates.  In your spreadsheet, you have over 100 on the Call sheet and over 300 on the Put sheet.  That's a lot of research unless your Think or Swim scan narrows it down to a manageable number to follow and actually invest.

Don't really want to go too far off track here but I do like the fact that you're presenting this information and tools.

Thanks again,

Mike

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