New Wheel Strategy Option Scanner Features - August 2024

August 31, 2024

What is up, my fellow market raiders?!

Today, I have some incredibly exciting news to share with you. This week we released not one… not two… but THREE of the most requested upgrades to the options scanner! While we’ve been testing these new features internally, we’ve already found some excellent candidates for the wheel as well as a more profitable way to sell covered calls. Without further adieu, let’s dive into the new features!

• Filter Stocks with Upcoming Earnings
• Scan by Ex-Dividend Date or Yield
• Covered Call Scanner for a Single Instrument

See the New Features in Action

Or keep reading below…

Filter Stocks with Upcoming Earnings

All things being equal, I prefer not to keep a cash-secured put open through an earnings announcement. In previous demonstration videos of the option scanner, I have shown that I will often find a position with a very high premium only to find out that there are upcoming earnings. With the new release, you can filter out any put or call that would be open through earnings.

Check out the results of the scan below (click to enlarge). I pulled up every expiration through the end of the year and set the filter to exclude any position that would be open through an earnings announcement, has a delta below -0.40, and is trading at a discount to fair value. Some of these are insane, a 118% annualized return on DKNG with no earnings to worry about?!

Of course, there are times when the premium might justify the risk of keeping a position open through an earnings announcement. The new filter will let you do that, too. You just have to set the filter to “Has Earnings,” or you can exclude the filter from your scan and look at all the positions together.

Scan by Ex-Dividend Date or Yield

This is an excellent feature if you only like to look at wheel stocks that carry a dividend, if you don’t like to keep campaigns open through an ex-div date, or if you’re looking to do something like the Triple Income Strategy.

Check out the results from the scanner of covered calls only with contracts that expire after the ex-div with a dividend yield greater than 0.7%. There are some VERY nice options that are trading at a discount to fair value, pay a high premium, and will let you collect the dividend. Triple income FTW!

Covered Call Scanner for a Single Instrument

Do you ever find yourself in a wheel campaign that is well out of the money and need help to choose the right expiration date to maximize your return? Yeah, this happens to me too. Fear not, we have a solution for this now! The option scanner can now scan for covered calls on a single symbol. This is extremely helpful in maximizing your premiums on a campaign that might be open for a while.

Here’s an example: I have a wheel campaign open on LYFT, and my cost basis is $12.50, almost $1 above the current price. I need to open a new covered call but I want to pick the best expiration. I set the scanner to look at LYFT only through March of next year, looking only at calls with a strike price range of $12.50-$13. Even though September 6 is the next expiration date at the time of writing this, selling a covered call expiring October 11 not only has a much higher but has a much higher annualized return! ☠ PREMIUM PLUNDERIN’ ☠

Ready to give it a try?

If you haven’t already, sign up for a free trial of Premium Pirates. The free trial is fully functional, so that you can try all these tools yourself. Whether you’re doing the wheel strategy, triple income, cash-secured puts, or covered calls, we’re making it easier to find the best stocks, maximize your premiums, track of your campaigns, and of course, be more profitable.