Option Selling Ideas 8-10-2020

Summary

  • Focused on option selling.
  • Some opportunistic hedges.
  • Screening for ideas.
Basic Options

Each Monday I put out lists of covered calls and cash-secured puts using screens at BarCharts. I am screening for VSL stocks, as well as, an expanded universe of stocks that used to be on the VSL. Stocks no longer on the VSL should have covered calls written near the money in hopes of getting called away or at least getting a higher premium. Stocks currently on the VSL can be written a bit out of the money to allow for more appreciation, the offset is lower premium.

I am arranging alphabetically, but you can sort how you want.

Stocks Covered Call Options Ideas

covered-calls-screener-covered-calls-vsl_-08-10-2020.xls

Stocks Cash Secured Put Option Ideas

naked-puts-screener-cs-puts-vsl_-08-10-2020.csv

ETF Cash Secured Put Option Ideas

naked-puts-screener-etfavs-c-s-puts-08-10-2020.csv

Cash Secured Put Option Selling Basics

Stick with selling puts when stocks or ETFs are oversold on a daily or weekly basis, i.e. RSI below 40 and rising, or RSI below 30.

Covered Call Option Selling Basics

Stick with selling covered calls when stocks or ETFs are overbought on a daily or weekly basis, i.e. RSI above 60 and rising, or above 70. In the case of dividend stocks, try to time covered call expirations to shortly after x-dividend dates.

Stock Rover Oversold & Overbought Stocks

Watchlist_VSL_250_rows_-_Momentum.csv

Stand Out Cash Secured Put Stocks

  • AbbVie (ABBV) – Sept 85 ahead of October x-div date
  • Intel (INTC) – October 45 or 50 ahead of November x-div date
  • Acadia Pharma (ACAD) – December 35 or 40 GTC above ask
  • Zendesk (ZEN) – October $75s into potential fall correction

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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