{"id":87,"date":"2018-10-22T21:24:49","date_gmt":"2018-10-23T04:24:49","guid":{"rendered":"https:\/\/quantcha.com\/news\/?page_id=87"},"modified":"2018-10-23T10:08:15","modified_gmt":"2018-10-23T17:08:15","slug":"how-do-you-find-the-right-stocks-to-trade-options-on","status":"publish","type":"page","link":"https:\/\/quantcha.com\/news\/how-do-you-find-the-right-stocks-to-trade-options-on\/","title":{"rendered":"How do you find the right stocks to trade options on?"},"content":{"rendered":"

There are thousands of optionable stocks on the market, but they’re not all equal.<\/p>\n

\"Option-Centric<\/a>
Option-Centric Stock Screener<\/figcaption><\/figure>\n

Options investors looking for new opportunities often seek out stocks that meet specific technical criteria. These criteria can be related to a wide variety of factors ranging from stock fundamentals to price movement to corporate events and even to the nature of the stock\u2019s options themselves. Zeroing in on the stocks you\u2019re looking for can be a challenge, which is where Quantcha\u2019s options-optimized stock screener<\/a> comes in.<\/p>\n

\"Stock<\/a>
Stock Type Filters<\/figcaption><\/figure>\n

At its core, the stock screener is all about filtering out stocks that don\u2019t meet your needs. There are many types of filters, starting with filters for the sector and type. For example, you can filter by ETF whether you want to see only ETFs, no ETFs, or all stocks.<\/p>\n

\"Earnings
Earnings & Dividend Filters<\/figcaption><\/figure>\n

You can also filter by dividends and earnings. If you\u2019re looking for dividend stocks, you can specify the minimum yield you want to see. For earnings, you can filter down to stocks based on how near their next report is in calendar and\/or trading das. You can also filter by Quantcha\u2019s proprietary Earnings Crush Rate<\/a>.<\/p>\n

\"Corporate<\/a>
Corporate Fundamentals Filters<\/figcaption><\/figure>\n

Next, there are filters for company fundamentals, such as the market cap and price per share. You can manually specify a market cap range (in millions), or use one of the presets to quickly filter down to a specific group. You can also filter by today\u2019s change and the P\/E ratio.<\/p>\n

\"Volatility<\/a>
Volatility Filters<\/figcaption><\/figure>\n

There are multiple ways to filter by volatility, including the 30d historical and implied volatilities. You can also filter by three different volatility valuation measurements: IV Rank, IV Percentile, and Quantcha\u2019s proprietary IV Rating<\/a>.<\/p>\n

\"Option<\/a>
Option Rating Filters<\/figcaption><\/figure>\n

The final set of filters help you zero in on stocks that meet your option liquidity requirements. This starts off with Quantcha\u2019s proprietary Liquidity Rating<\/a>, which is a 1-5 scale that distills how tradeable a stock\u2019s options are based on a multitude of option properties. You can also filter down to stocks that have weekly and LEAP options.<\/p>\n

\"Sorting<\/a>
Sorting Stocks<\/figcaption><\/figure>\n

Once you\u2019ve put your filters in place, you can sort by almost any of them.<\/p>\n

\"Stock<\/a>
Stock Screener Results<\/figcaption><\/figure>\n

Results are easy to digest. Each includes important details about the stock\u2019s volatility, earnings, dividends, and fundamentals. You also get convenient icons to indicate option liquidity in the top right corner of each result. A green drop is \u201cgreat\u201d or \u201cgood\u201d, a yellow drop is \u201cfair\u201d or \u201cpoor\u201d, and a red drop is \u201cnone\u201d. If the second icon is green, then the stock offers weekly options. If the third drop is green, it supports LEAP options. Finally, you can jump into the options search engine for a given expiration using the Trade dropdown.<\/p>\n

\"Sending<\/a>
Sending a Stock Screen to a Strategy Screener<\/figcaption><\/figure>\n

If you find a combination of filters you really like, you can pass them over to one of the strategy-specific trade screeners<\/a> using the dropdown at the top of the results panel.<\/p>\n

\"Loading<\/a>
Loading & Saving Stock Screens<\/figcaption><\/figure>\n

If you regularly look for the same kinds of stocks, it\u2019s also really easy to save and load different screens for recurring use.<\/p>\n

To learn more, check out our stock screener tutorial on YouTube<\/a>:<\/p>\n

\"Stock<\/a>
Stock Screener Tutorial<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

There are thousands of optionable stocks on the market, but they’re not all equal. Options investors looking for new opportunities often seek out stocks that meet specific technical criteria. These criteria can be related to a wide variety of factors ranging from stock fundamentals to price movement to corporate events and even to the nature … Continue reading “How do you find the right stocks to trade options on?”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/87"}],"collection":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/comments?post=87"}],"version-history":[{"count":3,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/87\/revisions"}],"predecessor-version":[{"id":102,"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/pages\/87\/revisions\/102"}],"wp:attachment":[{"href":"https:\/\/quantcha.com\/news\/wp-json\/wp\/v2\/media?parent=87"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}