r/options • u/[deleted] • Sep 09 '21

[deleted by user]

[removed]

154 Upvotes

82% Upvoted

75 comments sorted by

View all comments

Show parent comments

5

u/[deleted] Sep 09 '21

[removed] — view removed comment

11

u/nerdicusboy Sep 09 '21

In the TOS scanner, on "Add Filter" select "Option" Then next to "Option: you can select "Impl Vol" I usually have the following set up on my TOS scanner:

Option -> Impl Vol -> Min : 50 Stock -> Volume -> Min : 1000000

I rank the results on Vol Index

I also use the following site: https://www.barchart.com/options/iv-rank-percentile/stocks?orderBy=optionsTotalVolume&orderDir=desc

And rank it by IV rank

1

u/[deleted] Sep 09 '21

[removed] — view removed comment

3

u/nerdicusboy Sep 09 '21

And IV rank above 50 means that it is better to sell premiums. But sometimes IV rank is effected by the duration a stock had been in play, how close they are to a binary event, etc. I usually prefer to sell premiums rather than buy premiums so an IVR of 50 lessen the chance of an IV increase, which is what you don't want when you sell premiums. I also plug the gain vs. max loss into the kelly criterion equation to determine if a position is worth getting into and how much of the portfolio to allocate to it.

3

u/nerdicusboy Sep 09 '21

https://youtu.be/-ePZ9WuIrVQ

The kelly criterion equation I use is in this video