The Best Options Screener To Find Trade Picks

i'm always curious to discover some new trading tools i like to look at different screeners i like to look at what's on the market and i've found a very good screener that i actually wanted to share with you because sometimes it's kind of hard to have some inspiration for new trade ideas sometimes i need to look at what other people are training so as to have some new ideas and screeners can be a really good source of training ideas that's why i wanted to share this screen with you because if you sometimes lack some inspiration or if you don't know what to trade or you'd like to find maybe some new trading opportunities screeners can be a really good source of information and i've found actually a very good one that i wanted to share with you today but before diving into this video if at any point you find this video helpful or interesting and you actually like the screener that you see don't stay to subscribe to my channel and liking this video is the best way to let me know after that in my analytics which videos you'd like to see more of and which videos are you actually liking i'm going to get into the screener directly but first of all it's very important to understand that a screener is by no means something that is going to replace your training it's only there as a tool to give you maybe some inspiration if you lack some inspiration sometimes and it's very important to understand that screeners are only as good as your methodology meaning that if you're struggling for example to already make money and you try to develop your methodology screeners are not going to be that helpful you first of all really need to develop your methodology you need to be able to make money by yourself and then after that screeners are going to be very helpful because they're going to give you new ideas but as i said they're only as helpful as your methodology so if you're still trying to find out how you can trade options and try to make some positive returns hopefully you know that i've made plenty of videos on the different strategies that i personally use that i personally like for example i've made a video on the real strategy i've also made a video on the poor man's cover call or i describe how i trade in my own option portfolio so if you want to check all of the videos i'll put the links of those videos in the description of this video now that said now that you have some resources on which strategies i personally like to trade let's go directly into that screener that i wanted to share with you in this video so the website that i wanted to show you is called optimistic so obviously you'll find the link of this website in the description of the video just click on it it will be just located down below and you will arrive on that website so that website basically has a lot of tools available there is a free version and there is also a paid version personally i only use the free version because as i said i really use screeners as you know an idea generation tool i don't necessarily need to have the paying version but if you want to have the paid version that means completely free up to you what i want to show you on that website is especially the stock and option screen and there are more tools that i will show you just after because i think that they're still worth noting but for the moment let's stick to the screener itself so as you can see this is the page that we have in this area we have the different filters and in this area where you see all of the stocks those are the results so first of all let's imagine that we wanted to find let's say good opportunities good stock so you can sell some naked puts on those stocks how would you find those ideas so to find the screener that is going to help you find some option place just go here and down below and click on the screener where it's written option spreads when you click on it you're going to arrive in the options spread screener and once again you can see that there are a lot of filters and once again you have the results below what's interesting here and let's imagine that we wanted to for example scan the market to find some good opportunities to sell some puts on well in that case we would go into drop down menu and let's say that we click on expensive puts we would want for example to click on expensive puts and see that screener because the thing is when you sell options you obviously want to sell expensive options because you want the price of those options to go down that's how you're going to make a profit so by clicking on that screener for expensive puts it's going to show you some expensive quotes as it is and maybe some good opportunities for you to sell some puts on so you can have maybe some profits here so i'm going to run you through the different filters so you can see how it works so the first shelter that you have is the symbol so if you want to target let's say one specific symbol and you like to see the different options then you can do that personally i'm not going to use that shelter because i think that goes against the purpose of using a screener you want to use a screener so you can have many different stock ideas on which you could trade options on then you have the stock price which is the second filter for that screener so personally i like to stick to stocks that are priced around twenty dollars to fifty dollars this is really my sweet spot in terms of stocks that i like to trade i don't necessarily like to trade very expensive stocks like amazon i prefer to stick to cheaper stocks around thirty forty dollars i think it's a very sweet spot of mine by the way i also made a watch list in my previous video where i shared the watches that i actually used first to trade where stocks are priced around 30 40 which is really good also if you have a small account and if you want to have that watch list i also put the link in the description of this video there'll be a lot of links but hopefully you can find whatever you want then you have the stock volume so for this i think it's very important to always choose very liquid stocks and liquid options and personally i tend to stick to stocks that have at least five million shares traded per day so in that case you would click for example on that thing you would drag it so as to bring it to let's say five million so you see that now the screener is going to show stocks having a volume of five million shares traded a day minimum so it's going to really be the minimum then we go into the short leg window that you can find here first we're going to talk about the leg volume so the leg volume is really important because you always as i said for the stock you always want to have liquidity wherever you go so as much as we have now some good volume for the stocks meaning five million shares traded per day we also want to have good volume on the options so you can have a fair price when you enter the trade then when you exit the trade so personally in terms of volume i like to stick to at least 200 maybe not a thousand that's already two i mean that's only a very good number but at least uh 200 in terms of volume for the options that i want to trade that assures me that there is enough liquidity so i can enter the trade and get out of the trade at a fair price and hopefully with my profits then comes the moneyness so the moneyness is basically how add the money or how in the money you want the results to be so in that case because we want to sell options so hopefully to buy them back at a lower price and to make a profit i usually and that's like this for most of the people that sell options we tend to focus on out the money options and we want the option to stay out the money so we're going to focus on out the money options so to find out the money options you're going to go into the negative number for puts compared to calls where you i will show you after that if we're looking for calls to sell then the money moneyness bar we're going to move into the positive to find out the money options for puts we you're going to have to drag it into the negative numbers here you see that it's between minus 4 and 0. 0 being the add the money option and -4 for the put being the add the money options then there is the expiration that we have so in that case let's say that we focus for example on the june july expiration so it's going to be june or july then if we click on the button go it's going to now filter everything and find the stocks that are corresponding all of those criterias so if we click on go now it actualized and now you can see that there are plenty of results there like all of those as results and there are three pages of results you can really filter them by whatever you want for example if you want to filter them by let's say the name of the stock well you're going to see that there are plenty of different results and the first one is american airlines it's actually a stock that i very much like to trade and i've been trading it a lot since the beginning of 2021 so it's quite funny that it's the first uh stock that i've shown let's say for example that we just look at one result that just goes out of the screener so as to show you some examples of what you can actually do so as i said the first result is american airlines they basically tell us that um they're looking at the 23 strike the put 23 strike and it costs 2.36 cents and it has a very good volume and the return on investment if your put was actually called would be of seven percent so let's go into the test works platform and let's see about selling the 23 puts so now we are in the june 18 2021 expiration for the stock american airlines so you see that i already have actually sold the put currency spread on american airlines you can see here my position meaning that i have shorted the 21 strike and i bought the 16 strike which makes the put great spreads and here they told us basically that the 23 strike would correspond our filters so you see that this would correspond to that particular strike however you see that it's still an in domain strike actually it's like very slightly in the money and personally i think it's better if we focus on only other money strikes so maybe we can modify your filter to only focus on other money strikes and not on at the money strikes because here i think that they consider the 23 strike to be the at the money strike so if we come back in our platform and you only want to see how the money strikes that are being shown then you can just move the moneyness here in that window you can just move the moneyness to be for example at minus one between minus four and minus one and it's only going to show you how the money strikes normally at least so you see that we have once again some results and for example we see that there is united states still cooperation that you can see here and let's say that we focus on the 23 put once again they said that this would be a good result let's go into the test works platform to check that so for example here that would correspond to this strike for the 23 puts and if we sell it we would collect for example 64 cents and that why not you know that can be a good trade so you see that it can be quite nice this screener just basically tells you some recommendations of puts that you could potentially sell and that can be quite nice to take some ideas from that however there are plenty of different ways to use this screener for example if you like to filter it by the number of days to expiration you absolutely can here you see that i click and it changes between the july expiration and the june expiration but after that you can also filter by the strike to see the highest try code to see maybe the lower strike or you can also filter it by price meaning that you can focus on the puts that are the most expensive or you could focus on the proofs that are the least expensive then you can also filter by the volume or the time value percentage compared to the stock or the implied volatility or the return investment which i think is also very interesting if you really want to focus on the return on investment and really be capital efficient maybe use the return investment column to check that and there is also some charts if we click for example in the united states channel corporation you see that there is a small button right there if we click on it it's going to give us a chart where basically it gives you some more information which i think is also quite interesting because all of this remember that it's all free the only thing about your free account is that it's going to be delayed data but in the end honestly you don't really mind because you just want to have some stock ideas then you can put them in your watch list if you want and you know you can just have them for later and that's i think quite nice to have all of those different tools available but as i said there's not only like puts that you can actually screen for if we go back in the drop down button you see that there's so many different actual strategies that you could screen for i mean there's plenty of things if we go now into the expensive call screener then in that case now we're going to focus on calls and as i said you're going to move the moneyness into the positives so as to see the other money call options and once again we're going to put all the filters that i had put before so let's say that stuck between and 50 dollars stock volume 5 million max leg volume 200 volume minimum money less and once again we click on go and once again we have plenty of different results and let's take for example uh carnival cruises once again it's a stock that i've been training a lot in 2021 and for example they said the 30 call and that would be for example a good call to sell because it's quite expensive and you can see all of the different metrics the return on investment if called would be of 16 almost 17 percent you'll see that it has a good volume so let's check that into testing works now i'm in the june 18 expiration for conjuring quizzes and you see that the 30 coin strike would be this line and if you for example sell it you would collect 77 cents of credit and honestly i think it's a good deal like it could be a good trade to take so once again plenty of opportunities and the way i personally use this screener is that if i see a stock that i've never traded before that is liquid that has liquid options that i see is really fitting all my criteria that i like to trade well i'm going to put it in my watch list so i can save it for later and i have another stock to trade if i don't have any ideas because that's really how i consider um screen as option screeners i don't necessarily going to take exactly the trade that they mentioned i mean i could but and you absolutely could but i think it's also very useful to use it as an idea generation tool meaning that you see you discover a new stock then you just put it in your watch list and you save it for later so you can trade it now from now on and now you have some new potential trades that you could make with that trade that's really how i personally use it but it's not the only tool available on that website there are plenty of other different tools that you could use let me show you some option calculator and some probability calculators too so for example here i clicked on option calculator down below i don't know if you can see within that green rectangle and now it brings me to this tab meaning that now you can also start analyzing the profit and loss calculator for the option that you want and see how it would behave where is your break-even point and i think it can be quite useful but there is one tool that i really really like and i really want to show you it's called the probability calculator because we tend to forget that options are very much based on probabilities and honestly it's just about probabilities most of the time and it's very useful to be able to see that visually so let me show you a tool that exists on optimistics and let me walk you through it so if you click on the probability calculator that is down below then you're going to arrive on that page what does that mean well it's going to help you understand what are the probabilities of for example seeing a stock staying within a certain range or going out of that range so you can also visually see what are the odds of profit for you when you place a trade for example you're going to choose like the expiration that you want so let's say june 18th and then after that we're going to look at enter lower and upper bound so meaning that we're going to enter for example a range and we're going to see the odds of the stock staying within that range and outside of that range so if we look at for example the graph so if we look at the graph for example for united states general corporation what are the odds let's say of the stock staying between let's say thirty dollars and if i move that thing and let's say twenty dollars what are the odds well with that tool you can actually know what are the odds of seeing united states steel corporation staying between twenty dollars and thirty dollars before june expiration which can be quite interesting so let's see what are the results so you see that in the filters enter lower and upper bound i've entered the strike 20 and i entered the strike 30 you see that i also have the june 18 2021 expiration and i just literally changed those things and also you have the symbols here to fill then when you click on compute it's going to give you the probability of staying within the bound and outside your range now we have the graph that shows how likely it is that x is going to stay within my range or outside my range for example the probability that x is going to stay below 20 below the 20 strike is of 35 percent you can see here then the probability of x staying within my range staying between 20 and 30 per share is of 52 percent you can see it here and the probability of saying x going above the 30 strike at expiration is of 11.89 percent and you can see a visual representation of that just below so you can see that it's actually very useful because if you want to get you know a bit a culture to the probability concepts and you don't really know how it works you can just use that tool that is very much user-friendly and you can really use it for yourself to see what are the odds of for example seeing a stock going above a certain price or going below a certain price i mean it can really be useful especially for those who like to sell for example short strangles you can really see that quickly another example i've taken the stock electronic arts what are the odds let's say of seeing for example electronic cards staying between i don't know let's say the 130 strike and the 150 strike before the donating expiration so once again we would fill in for example ea and once again here it's going to load the data for the symbol and we said that the lower bound would be the 130 strike and the upper bound would be the 150 strike so what are the odds of seeing for example electronic cars staying within that range or and outside that range so if we click on compute and i forgot to put the expiration so it's going to work better because now i'm just realizing that it was a bit of a weird result so now if we click again on compute after you've put the right expiration you can see that the odds of seeing for example an electronic card staying within your branch between the 130 strike and the 150 strike is a 51 percent you almost have one chance out of two to see electronic cards staying within that range and then the odds of seeing electronic cards staying below 130 dollars per share between the journeys in expiration is of 21 and for the upper bound it has 27 chance of staying above 150 per share so you can see that it's very interesting personally i think that's very cool to have this type of tool available for free on top of that i mean it's really amazing and honestly i really encourage you to use that just for your own you know understanding of probabilities and how it actually all works and see you know what are the odds of you actually being right and honestly using probabilities that way and this is something that is available on the test works platform for example you know this is something that is really useful when you start looking at your trace from a probability standpoint you start looking at your trace to see what are the odds of me being right what are the odds of me being wrong you know that can be really useful to see that i hope you find this video interesting where i show you for example on the screener and show you how it works and also the different tools that are available not only the screener but also the option profit calculator but also the probability calculator i mean i think it's really really interesting to have all of those different tools available especially for free if you enjoyed that video don't stay to subscribe to my channel and liking this video as i said it's really the best report you can give me and it helps me know what type of videos you'd like to see more of please make good informed decisions i'll see you in the next video and in the meantime i wish you all the best

Channel: JC Gilbert

Views: 3,970

Rating: 4.9795918 out of 5

Keywords: options trading, how to trade options, stock screener, finviz stock screener, stock market, stock options, trading strategy, stock trading, stock market for beginners, trading options, day trading options, options trading for beginners, s&p 500, top finviz scans, option trading, cash-secured puts, put screener, covered call screener, options trading screener, options screener, optionistics review, futures trading, options strategy screener, trading screener

Id: IeZTF8iLLrY

Length: 18min 36sec (1116 seconds)

Published: Tue May 11 2021