Cash-secured put screener

Supported filters

Prob. of expiring worthless (%)

Model-estimated odds the put expires out of the money. The classic high-probability screen starts at 80%; 70% widens the list and raises the premium.

Distance OTM (%)

How far the strike sits below the stock price, as a positive percent. A minimum of 3% to 5% keeps the strike below normal noise; a maximum keeps you from screening deep out-of-the-money puts that pay almost nothing.

Annualized return (%)

Return on the cash-secured basis scaled to a year. A 10% to 15% floor removes puts whose premium is too small for the cash tied up.

Return on risk (%)

Return per trade on strike minus premium. A 0.5% to 1% minimum keeps out puts that only look worthwhile after annualizing a very short window.

Days to expiration (days)

Days to expiration. The 15 to 45 day range is the usual sweet spot; up to 120 days is available for sellers who prefer fewer, larger premiums.

IV rank

Elevated implied volatility rank means puts are paying more than their recent norm. A 30 minimum is common; it also filters out very quiet names where the premium is thin.

Earnings

Exclude puts with an earnings report before expiration unless you want the stock to gap on a headline while you are short the put.

Ex-dividend date

Exclude puts with an ex-dividend date before expiration if you do not want the dividend-related drop in the stock price inside the window, or require one for wheel entries on dividend payers.

Dividend yield on strike (%)

Annual dividend as a percent of the strike. If you are assigned, this is the yield on the shares at your purchase price, which is what makes a wheel candidate worth holding.

Dividend Aristocrats only

Limit results to S&P 500 companies with 25 or more consecutive years of dividend increases when you only want to be assigned on long-tenured payers.

Market cap ($)

Company size floor. Since assignment means owning the stock, most sellers set this to $10B or more so the worst case is a large company at a lower price.

Exclude ETFs

Drop index and sector funds so results are individual companies, or leave funds in when you want broad-market puts.

Total option volume

Total option volume across the chain. Liquid chains have tight put markets and enough strikes to pick the distance you want.

Bid-ask spread ($) ($)

Maximum bid-ask spread on the put in dollars. Spreads over $0.50 make the quoted premium hard to actually collect.

Screening walkthrough

1. 1. Set the probability first

   Probability of expiring worthless is the filter that shapes a cash-secured put scan. Start at 80% for a list of puts that mostly expire and pay modestly, or 70% for more premium and more assignments. Pair it with a distance out of the money of at least 1% to 3% so the strike is not sitting on the current price.

2. 2. Then decide what return the cash deserves

   The premium is measured against the cash you set aside, so returns per trade look small. An annualized return floor of 10% to 15% is a reasonable filter for large caps; higher floors mostly return more volatile stocks. Sorting by market cap instead of return, which is the default, surfaces the biggest companies first and lets you accept a lower yield for a name you actually want to own.

3. 3. Clear the window of events

   Turn on the earnings exclusion and the ex-dividend-before-expiration exclusion for a clean income window. For wheel entries you may prefer the opposite on dividends: require a dividend yield on strike of 2% or more so an assigned position pays you while you sell calls against it.

4. 4. Choose the window

   Set days to expiration to 15 to 45 for monthly cycles. Longer windows collect more premium per trade but tie the cash up longer and give the stock more time to fall through the strike; the annualized return column normalizes for this so you can compare.

5. 5. Only then tighten liquidity and size

   Require total option volume of 5,000 or more, a bid-ask spread of $0.50 or less, and a market cap of $10B or more. The remaining list should be a few dozen names. If you want to be assigned only on dividend growers, add the Dividend Aristocrats toggle, which is what the Dividend Aristocrat Puts preset does.

Limitations and risks

• Returns are on the cash-secured basis. If your broker holds less than the full strike, your return on capital is higher and your risk profile is that of a naked put; screen the naked put strategy for the margin-basis figures.
• Assignment is the plan, not a surprise. Early assignment on a put is uncommon unless it is deep in the money with little time value left, but it can happen at any time before expiration.
• A high probability of expiring worthless is a model estimate from option prices. It does not account for a scheduled earnings report unless you exclude earnings, and it is not a guarantee.
• Quotes are refreshed intraday and are a snapshot, not a live feed. The mid is not an executable price; conservative pricing (sell at the bid) is the more realistic figure.
• The scanner returns candidates only. It does not know your account size, your existing exposure, or how many puts you can secure with cash.

Frequently asked questions

How is the return on a cash-secured put calculated here?

Premium divided by the strike minus the premium, per contract, which is the maximum loss on a fully collateralized put. Annualized return multiplies that by 365 over days to expiration. It is a comparison yardstick, not a forecast.

What is the difference between the cash-secured put and naked put strategies in the scanner?

Same option, different risk basis. The cash-secured put figures returns on strike minus premium. The naked put figures them on the Reg-T margin your broker would hold, so the percentages are higher and the dollar risk is unchanged. Never compare a naked put return against a cash-secured one.

Which preset should I start with?

Cash-Secured Put Entries on Mega Caps for strikes a few percent out of the money on the largest companies, Wheel Candidates for short-dated puts on dividend payers, or Dividend Aristocrat Puts for long-tenured dividend growers. Every preset can be edited and saved as your own scan.

Can I screen for puts on a stock I want to buy anyway?

Yes. Add the symbol to your watchlist and set the universe to watchlist, then use distance out of the money to place the strike where you would be happy to buy. The breakeven column shows the effective purchase price after the premium.

Does the screener show what the shares would pay if I am assigned?

Yes. The dividend yield on strike column divides the annual dividend by the strike price, which is the yield at your purchase price rather than at the current stock price.

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