Manually sifting through potential options trades to find the winning tickets is like searching for a needle in, well, a market floor full of needles. You need tools that can help you narrow your searches and give you a manageable list of results. This is where options scanners and screeners come into play.

What Are Options Scanners and Screeners?

In a chaotic market, options scanners and screeners are your trusty sidekicks. Scanners help you spot potential golden plays, while screeners refine your focus to zero in on the most promising options.

Options Scanners

Options scanners sift through heaps of data to find trades that meet your criteria. You can set them to look for things like unusual activity that could signal impending market squeezes or rallies or specific price movements that might hint at upcoming volatility. Scanners also help you follow trades with massive volume or open interest to spot where something is going to pop off or show you where the smart money is piling in.

Options Screeners

Screeners let you filter those results by various metrics. Want options with high IV because you’re expecting a big move? Set that filter. You can also set parameters to find options with specific strike prices or expiration dates. Some advanced screeners include the Greeks so that you can analyze how sensitive the options are to various factors like price changes or time decay.

Key Features of a Good Options Screener

Customizable Filters: You should be able to filter options by strike price, expiration date, volatility, and others.
Volume and Open Interest: Access real-time data on trading volume to spot unusual activity. Your screener should also show how many contracts are open to help you gauge market sentiment.
The Greeks: A good options screener will provide data for Delta, Gamma, Theta, Vega, and Rho. Some will even let you use the Greeks as a filter.
User-Friendly Interface: Look for a screener with a clean, intuitive layout that makes it easy to navigate and set filters without needing a PhD in options trading.
Alerts and Notifications: Set up alerts for specific criteria, like when options meet certain volume thresholds or when IV spikes, so you never miss a golden opportunity.
Integration With Trading Platforms: A screener that integrates with your trading platform is a definite advantage, as is makes it easy to execute trades directly from the screener without jumping between apps.
Educational Resources: Quality screeners may also provide educational resources or insights about options trading to help you sharpen your skills and make smarter trades.

How To Set Up a Screener for Your Strategy

Change the game by setting up an options screener tailored to your trading strategy. Let’s break down the filtering steps for basic call and put options.

Bullish Strategy: Buying Call Options

Select only call options in the screener.
Set the strike price a little above the current stock price (e.g., if the stock is $50, look for strike prices around $52 to $55).
Choose options with expiration in the next one to three months to capture short-term moves.
Filter for implied volatility between 30% and 60% to find decent opportunities without excessive premium costs.
Set a minimum volume threshold — 1,000 contracts, for example — to ensure there's active trading.
Filter for open interest above 500 contracts to indicate liquidity.

Bearish Strategy: Buying Put Options

Select only put options in the screener.
Set the strike price slightly below the current stock price. For example, if the stock is $80, look for strikes from $75 to $78.
Choose options that expire in one to two months to capitalize on expected price drops.
Look for implied volatility around 25% to 50% to find reasonable premium levels.
Set a minimum volume of 500 contracts to find actively traded puts.
Find more liquid options by filtering for open interest of at least 300 contracts.

Scanning for High IV Opportunities

First off, you’re gonna want to grab yourself an options screener that lets you filter by implied volatility. Set your screener to hunt down stocks with an IV percentile above 50%: stocks that are getting wild compared to their historical volatility.

Now, let’s get tactical. Look for stocks that are about to drop earnings bombs. They’re the ones that usually crank up the IV as traders gear up for potential fireworks. Keep an eye on stocks that are buzzing with recent news, like mergers, product launches, or any drama that gets Wall Street talking.

Next, think about volume and open interest like your trusty sidekicks. Go for options with high trading volume. This tells you there’s serious interest and liquidity. Set a minimum open interest to make sure you’re looking at options with enough contracts on the board.

Finally, once you’ve got a list of high-IV contenders, it’s time to do some detective work; not every high IV stock is a golden ticket. Check out the stock’s fundamentals and the current market vibe. Pair your findings with some technical indicators, or dive into the news to back up your plays.

Using Screeners for Earnings Plays

Start with a reliable options screener that allows you to filter based on real-time earnings dates and other criteria.
Filter for stocks that have earnings announcements coming up within the next one to two weeks.
Look for stocks with IV above 50% to find plays that are expected to swing big.
Set minimum thresholds for volume and open interest so that you’re targeting options that are actively traded and liquid.
Choose strike prices close to the current stock price (at-the-money) or slightly out-of-the-money, depending on your risk appetite.
Look at how the stock typically reacts to earnings reports. Some stocks are known for big moves, while others might just coast.
If your screener allows, set alerts for any significant changes in volume, IV, or price action as the earnings date approaches.

Once you’ve done your homework and feel confident, go ahead and place your trades. Make sure to have your risk management strategies in place — never go all-in without a plan!

Integrating Screeners Into Your Trading Routine

Think of screeners as your secret weapon, helping you sift through the chaos and zero in on golden opportunities. Start each day by firing up your screener and setting your filters based on your strategy. Integrating this quick routine gives you a clear focus, making it easier to spot potential trades. As you dig into the data, stay flexible and adjust your criteria based on market vibes.

Hone Your Strategies With Options Scanners and Screeners

Mastering options trading requires sharp strategies and the right tools. By incorporating options scanners and screeners into your routine, you can quickly identify high-potential plays and capitalize on market opportunities. Embrace the power of technology to help you filter through the noise, ensuring you focus on trades that align with your goals.

Investing with Options

Level Up Your Trades With Options Scanners and Screeners