How do you actually screen for options selling trades? my 4 filter checklist
been selling premium for a while now and ngl the biggest lesson wasn't strategy, it was filtering. chasing fat premiums on garbage tickers blew up my account more than once lol.
these days i run every candidate through 4 hard checks before i even look at the chain:
liquidity. tight bid ask, decent open interest, real volume. if i can't get filled near mid i skip it.
would i actually be ok owning the stock long term if it gets put to me? if the answer is no i don't sell the put. simple as that.
IV rank. i want it elevated, ideally above 70. anything under 30 honestly not worth the buying power imo.
no earnings or binary events before expiration. been burned too many times on a "safe" CSP into a print.
started on broad ETFs first, stuff like SPY QQQ IWM VOO, before i ever touched single names. pulled the IV rank chart from moomoo community the other day and it's wild how fast the rank flips on names like TSLA NVDA AAPL once vol cools off.
friction matters too. saw a breakdown where like 30% of premium just bleeds to spreads if you trade illiquid stuff. that math humbled me real quick.
anyone running a stricter checklist? what's your IV rank floor before you'll touch a name?