The EASIEST Way To Find Stocks For Selling Put Options

All right. One of the biggest questions I get is how do you actually find the good stocks to sell put options on? And if you know anything about us here at the Smart Option Seller, that's all that we do. We sell put options. But if you're just getting started and you have no idea which stocks to choose and you're looking at potentially thousands of different stocks, how do you whittle it down to a manageable list? Well, in this video, I'm going to show you two great websites you can use. They have scanners and screeners that that'll do all the heavy lifting for you. You can narrow down your choice to just a handful of stocks. Save you a ton of time. All right, so that's what we're going to do in this video. Sit back and relax and let's just jump right in. All right, everyone. Lee Lel here from smart optionseller.com. Now, before I show you these two websites, I want to make sure that you get our free ebook on putelling. If you don't know anything about put selling or if or if you're just getting started selling put options, get our free ebook. It's like a you know like a 35page guide that I wrote all about put selling. It's called put selling basics. I'm going to put a link down in the description below. Make sure you get the free guide. Okay. So, we're going to look at the first website that we're going to look at about selling put options is options.com. You can see up here in the in the window address here, optionsamurai.com. I'm also going to put a link down below for that as well. Now, you can get you can try this out for 14 days for free. It is a paid plan, but it is well worth it. So, try it out for 14 days. I'm going to go over, you know, some of the ways that you can use it. So, whittle down your your your list of candidates for selling put options. So, the first thing that you do when you get into options.com, you're going to go to the screener, click up here, screener, and what it's going to do is you're they're going to you're going to see these predefined scans. Okay? Now, under the predefined scans, you can see all these things right here. Okay? All you can choose any one of these things or you can go into just this initial list that they have right here. Okay? So, since we sell put options, we're we can narrow it down. You click on naked put right here. Okay. And it's going to give you there's five candidates of pre-defined scans that they already have. Now, the first one is selling high probability puts on dividend aristocrats. Now, dividend aristocrats are companies that have raised their dividends every year for at least 25 years in a row. Okay? If you know anything about dividend arisats, these are very high quality companies. This one right here, selling out of the money puts with a high probability of profit on stocks that are oversold. So, these are stocks that have really come down. They're oversold. They probably should be getting ready to turn higher again. The one thing you you want to know is that when you sell put options on stocks that have been going down, typically the implied volatility on those stocks can be higher, which means the put options are are worth more. So when you sell them, you're going to get a higher premium for for them. At the same time, though, since they're in a downtrend and and they're, you know, they've been oversold, they could go lower even more. So, you got to be careful with these. But I just want to show you how you use it. You click on the title here. Okay? Then it's going to come up with the the the stocks that it that it's found. And uh let me just move myself over here a little bit. along the left hand side here it says naked put. This is the drop down. Now you can pick any one of the the the choices here but we're doing naked puts and these are the these are the the criteria that option samurai has already put in. It's got technical data, fundamental data and these are the the choices that it's already made and and some of the parameters. Now you can add more filters in the descriptive data. You can go through this whole list. the technical data, you can scroll down and see all these different things. You can choose um the fundamental data, all these things. So, when you click on one of them, it's going to get added to the list over here. And if you hover your mouse over each one of these things, it's going to show you, you know, the definition of what it is. But this is the this is the one that they've already pre-built. And if you want to change any of the parameters here, you just click on it and then you can go into either the drop down here and you can, you know, change the parameters. Okay, so in this selling out of the money puts with high probability of profit on stocks that are oversold. So here's the list that it came up with and it only has about you know 1 2 3 4 5 6 7 8 9 10 11 stocks. Okay, so Micron obviously we all know Micron has been going up and then it's coming back down. Um, a couple things I want to point out in in the list here of the headings. Okay, so it gives you [laughter] excuse me the stock ticker obviously the price where it's at and I rank IV rank is very important. implied volatility, that's what IV stands for, tells you where on the SK the scale over its last year, where the implied volatility ranks for those options. Now, volatility rank is, you know, from zero to 100 and 100% IV rank means that the options are the highest level they've been in the last year. Now, when IV is high, that means opt the option prices are higher than they've been. So if you sell options when the IV is really high, you're going to get more money for them. So what you can also do is you can also um click on each column so it ranks the the stocks with the highest IV rank. And so what we're going to do is we're going to sort this column first for the highest ranking of IV. Now you can see SanDisk also just like Micron gone up like crazy. It's come back down a little bit. So SanDisk, it's got the high IV rank and and and the other categories here, the probability of expiring worthless is 75.4%. You can also um click on the heading here and rank them that way as well. And so what what this does for you, it tells you the stock, it tells you the strike price that it's that it's keying in on and the expiration date. Now, this expiration date is only 6 days from now, and the strike price is about $200 below um the current price of SanDisk, and it's only got six days left. Okay. So, um and here's the the bid if you you can also scroll over here a little bit if you can't see all the columns. So, the bid is um $41.40. That's over $4,000 you can receive by selling this $1,145 strike put option. Now, it's a really expensive stock, so you got to be careful there. Now, next one is Corning. It's only $154. So, the strike that it chose is the 140 put. It's about $14 lower. It's still got a very high IV rank and which is good. And then it it's this is the um only expiration next week. I mean this is a very short time frame. Okay. And so the bid is $2.39. That's $239 that you can get if you sell this thing. Now you probably want to go into the option chain and and see current prices when when you actually do these things. Okay. So you can you can see the list is small uh Micron, Sienna, Marvel, all these like semiconductor and chip stocks uh Alcoa, Advanced Auto Parts. So there's only what I say about 11 stocks in here. So IV rank is very important and you can read all about how the definitions they have on all these things. But let me show you what else you can do. Okay, if you want to create your own scan, you can you can click on run scan. Uh, I'm sorry, not that one. If you want to create your own scan, go back to all scans and then you can look at all these and it's where it says you can either look at all these, like I said, or you compose a new scan. Now, when you compose a new scan, it's going to be up to you to choose the parameters that you want. Now, click on the down arrow here, naked put, because that's what we're working on. And then what you can do is you can go into first start in the descriptive data and you can add your own filters in here. Okay? And so fundamental data you can choose any of these things. Now obviously there's really nothing chosen here because it's it says any for any of these um categories here. So it's going to basically choose as many stocks as it can. So there's more than 16 pages worth of all these things. So you want to narrow these things down a little bit. Okay. So, a couple things I want to talk to you about is the moneyiness is um that's out of the money. Okay. So, what you want to do is you click on it. Okay. You can either go to advanced view or basic view. So, the moneyiness since we choose out of the money strike prices. Out of the money is the stock prices here. You want to choose put option strikes that are well below the current price of the stock. So we want the to be below the stock price. Okay. And you click the check mark here. So that's how you change that probability of expiring worthless. Okay. So you can move the slider. We want a higher probability of the thing expiring worthless. So let's just say at least 75%. You click on that and you can choose your expiration dates. Now you can you can choose a range of dates that you want to go to. You can click on the the calendar here and let's just say we want to use, you know, at least the 30-day expiration. So, uh we're going to use the third Friday of August and we're going to go to let's say the third Friday of September. Okay. So, that gives us a little bit of range, a shorter term like 30 to 60 days out. And the bid ass spread, this is the spread of the option contracts. So, maybe we make this a little bit lower below 15 cents. You like nice tight bit ass spreads. And um uh we're going to keep some of these other things here. IV rank, we want a high IV rank. So let's bring that up to 75% as well. Okay. So I'm just showing you how you can change some of these things. And once you've changed some of them, click on run scan again right here up here. And it should narrow down. Okay. So now it only has a couple pages. So, we narrowed it down a little bit, but you can start going through some of the stocks here. Now, I'm going to show you how to do this. Let's just say you're looking at Apple. Apple's got a high IV rank. It's $333. Here's the strike that it chose for the September expiration. Oh, the one other thing I want to show you here is the expiration. Um, there's one uh let's see, hang on for one second. There's one there's one filter that I wanted to put in in here to show you that's very important. We want to choose the earnings date because we want to choose uh an expiration that comes before the earnings date because you don't really want to sell put options or hold a position over an earnings announcement. So, we clicked on it and now it should be in here the expiration date. Okay, the earnings date I should say. So you want the earnings date to be after expiration. So we click in there as well and we run the scan. So now it should be now we only have one page of stocks here because a lot of those other stocks had their next earning date um before the expiration. So we don't want that. Okay. So now let's just click on uh let's say the let's look at now a lot of these are the ETFs. Let's look at Huelet Packard right here. Okay, it's got a high IV rank, $45, $35 strike. So that's a $10 cushion right there. And it's for the August 21st expiration date. Okay, high IV rank. Probability of expiring worthless 84.3%. And you can get about 56 cents or 56 actual dollars if you sell this thing. Now, this is not a recommendation. This is not um me telling you to sell put options on Hulip Packard. This is just um one of the things that it's found. Okay. So, you can go through the list. As I said, you can add more filters. Just click on add filters. But you can use this little criteria that I've set up um to help you find some of these scans. Okay. Now, when you click on the name Hullet Packard, what it is is going to bring up another little section down here where it'll show you the payoff chart. When you sell the put option, it's giving you some numbers here. So the midpoint bid assass spread is 67 cents. So maybe you try to sell it for more than 56 cents. Try to do something in the middle. You can look click on stock and then you can look at the the chart right here. So this is a Huelet Packard chart. Looks pretty good. Been going up. It's got a little pullback. So you know make sure you check your charts and the options. This will show you the the IV uh versus the historical volatility. So you can see over the last year the implied volatility and historical volatility has been going up. So that means the option prices are more expensive. So this is good for you right now to sell these things when the IV rank is high. Okay. So that's option Samurai. Once again, I'm putting the link down below. That is my affiliate link. So if you click on it, they know that you're coming through me. You're going to get those 14 days free and then you can decide if you want to do the free plan. The second website that we're going to look at is called finnvvis.com. I'm sure I'm sure a lot of you have heard of finiz.com. I've actually talked about it before in some of my videos. Now, this one is free, but they're also a paid plan as well, but you can do a lot with just the free version. Now, when you get onto finnvvis.com, you click on the screener right up here. You see where my mouse is? Uh, okay. Let's see what happened here. Sorry about that. They had to do a little bot thing to make sure that I was human. So, you go to um screener here and then what it's going to come up with is it's going to have a couple different things. You got descriptive, the fundamental, technical. So, these are the things that you up in here you can change. Now, the descriptive you want um I think one of the the the best things you can do is market cap. Okay, market cap is the size of the the company. You want to have quality stocks that are big names. So, you know, this is something uh that you can probably do. You know, 10 billion to 200 billion is the thing you could put here in the descriptive. Um, I don't think there's really anything else that you really want to put in here. You go on to the fundamental data now. And what you want to do is put in some some numbers that you think is is good. PE ratio. You want something that's um you know profitable, which is a PE ratio, you know, greater than zero, but a profitable company. Earnings per share growth over the past 5 years. You definitely want to have a company that whose earnings per share have been growing. Um you can do over 10% on that if you want. Let's see. Uh what else is good? Uh earnings per share growth for the next five years. Okay, you want something strong as well. Maybe we do another see the company growing their earnings per share over the next five years 10% as well. Um net profit margin we want a good profit margin. Um let's say maybe um we want how about over 15% profit margin. I mean you can change all these things that you want. Uh let's see anything else that we want here. sales growth. You know, some of these things I'm more of a technical guy, so a lot of this fundamental data doesn't mean a lot to me because I'm more about looking at the charts. So, you can change some of these things around. Now, you click on the technical side of things. Now, some of the the the the moving averages that I follow, the 20-day, the 50-day, and the 200 day moving averages. So, what you can do is you got your 20-day simple moving average here. We want it to be um above the 50-day moving average. So, let's see. And it's a price above price above 20-day moving average. No, that's the stock price. We want the 20-day moving average um above the 50-day. Okay. So, 20-day above the 50-day and then we want the 50-day above the 200 day. So, we do that 50-day above the 200 day. And let's see anything else in here. We want to look at volatility. Uh I think that the RSI we want to be not overbought, not overbought. Let's say not oversold right there. And then let's see. So, here's some of the stocks that it's come up with so far. Now, we only co concentrate on the US exchanges. So, you can look at the countries here. So, here's some of the stocks right here. eBay, Fortnet. So, if you click on Fortnite right here, so what what it'll do is it'll bring up the chart. So, you can see obviously the stock is rising, which is good. The moving averages, the p this the the stock price itself is above all the moving averages. Okay? So, you can take a look at that. Um, if you want to get back out of this, um, let's see. Let's just click the back button here. Okay. So, yeah. So, this shows you the list. So, you know, maybe you can cross reference Finn Viz and, you know, Option Samurai. They all have the same things. They have the descriptive, the fundamental, the technical. So, use both. See which one you might like better. But in both cases, put in some of your parameters or just, you know, use some of the ones that I've already defaulted for you. And by no means is is my way better than anyone else's. I'm just showing you some of the things that that I could put in to help me narrow down the list. So, if you're stuck trying to find the the candidates for selling put options out of the thousands that are out there, you got to use a scanner or a screener. And you know, Option Samurai has some of those those scans that are already pre-built for you. Start there and then tweak them to your liking. Okay? I want to try to help you whittle down that that stock list so you can become real so your time to find these things gets shorter and shorter each week so you you have more time to like make the trades. All right, so I hope that's been helpful for you. Once again, down in the description, I put the affiliate links for Option Samurai, for Finniz. Finnbiz is free, but it also has a paid plan. And don't forget, once again, our free ebook on put selling. Don't forget to sign up for that. I put the link right down below. Also, in the description below, down there, I have uh links for other things as well after you've done the ones that I've told you to look at. All right. Uh on the screen here, I'm going to put another video about selling put options to help you on your way. And that's all for me. I'll see everyone in the next video. This is Lee Lel signing