The four strategies we screen for
A plain-language reference, not a recommendation. Every strategy below carries real risk — read the notes on downside before you size a position.
Cash-Secured Put
You sell a put and set aside enough cash to buy 100 shares at the strike if assigned. You collect premium up front; your risk is owning the stock at the strike, minus premium collected, if it falls further.
Covered Call
You own 100 shares and sell a call against them. You collect premium and cap your upside at the strike; your downside is the same as holding the stock outright, offset slightly by the premium.
Put Credit Spread
You sell a put and buy a further out-of-the-money put for protection. Max loss is capped at the spread width minus the credit received — smaller capital outlay than a cash-secured put, with capped risk.
Call Credit Spread
You sell a call and buy a further out-of-the-money call for protection. Profits if the stock stays below your short strike; max loss is capped at the spread width minus credit received.
Terms used across the site
Delta
A rough estimate of an option's odds of expiring in the money, and how much its price moves per $1 move in the stock.
DTE
Days to expiration — how many calendar days remain until the contract expires.
IV Rank
Where current implied volatility sits relative to its own past year — high IV rank generally means richer premium.
Return on Capital (ROC)
Premium collected divided by capital at risk, showing yield independent of share price.
POP
Probability of profit — an estimate, not a guarantee, of the odds a position finishes profitable at expiration.
Open Interest
The number of outstanding contracts at a given strike — a rough proxy for how easily you can enter or exit.