The Money Tree

Safely Generating Income in Retirement

Options Screener

Posted by mounddweller on April 28, 2011

Fellow Traders,

Those of you who regularly keep up with the comments section of my posts know that recently I have been exchanging messages with a new reader, Vijay.  Vijay would like to develop a Deep OTM NP Strategy of his own using LEAPS.  One of the criteria he uses to search for potential trades is the greek, Delta.  Some of you may already know that Delta is often used as a close approximation for the probability that an option will finish ITM. 

While I personally don’t use any of the greeks to screen for good trades I know other successful traders who do.  One of these is my investing buddy, Patrick, over at http://www.mtrig.com/.   The reason I mention Patrick is because he has built a terrific option screener with many selection criteria available to the user, including the greek Delta which he labels as POA (Probability of Assignment).  Below you’ll find a screen shot of his screener.  Vijay, I used your < 20% POA value as one of my selection criteria.  You’ll note the screener returned over 1200 options meeting that criteria.  I also limited the screen to focus only on large-cap stocks.

If you like what you see, give my buddy Patrick a shout.  FYI, I receive no compensation from Patrick for commenting on or endorsing his site.

Regards,

Troy

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