Options Trading Tools Guide
Complete guide to covered call scanners, cash-secured put calculators, portfolio scanners, and options backtesting tools.
Covered Call Scanner
A covered call scanner helps options traders find the best call options to sell against shares they own. It calculates max profit, downside protection, assignment probability, and annualized ROI for different strike prices and expiration dates.
What is the best covered call scanner?
The best covered call scanner provides real-time data, backtested assignment probabilities, and risk-adjusted yield rankings. Days to Expiry's scanner analyzes 5+ years of historical data to show actual assignment rates, not just theoretical probabilities. Look for scanners that filter by DTE range, minimum yield, and integrate with your portfolio.
Cash Secured Put Calculator
A cash secured put calculator helps traders analyze put selling opportunities. It calculates max profit, breakeven price, assignment probability, and annualized ROI for different strike prices and expiration dates.
How do you calculate cash secured put returns?
Cash secured put return is calculated as: Premium Received / (Strike Price × 100). For example, selling a $50 put for $1.00 premium gives a 2% return ($100 / $5,000). Annualized: (Simple Return / DTE) × 365. If assigned, your cost basis is Strike - Premium.
Wheel Strategy
The wheel strategy is a two-phase options income strategy. Phase 1: Sell cash secured puts on stocks you want to own. If assigned, you own the stock at a discount. Phase 2: Sell covered calls against the stock you now own. If assigned, your shares are called away and you restart with cash secured puts.
Is the wheel strategy profitable?
The wheel strategy can be profitable in sideways to slightly bullish markets. Backtesting shows it often outperforms buy-and-hold in volatile markets while generating consistent income. Success depends on stock selection, strike selection, and risk management. Use backtesting to validate the strategy for your target stocks.
Portfolio Scanner
A portfolio scanner analyzes your entire options portfolio to identify covered call opportunities, cash-secured put candidates, and risk exposures across all positions. It scans the market in real-time to find optimal strike prices and expiration dates based on your existing holdings.
What does a portfolio scanner do for options traders?
A portfolio scanner analyzes your entire options portfolio to identify covered call opportunities, cash-secured put candidates, and risk exposures across all positions. It calculates max profit, breakeven price, downside protection percentage, assignment probability, annualized ROI, and premium income potential.
Options Backtesting
Options backtesting analyzes how a trade would have performed historically. It shows assignment rates, win/loss distributions, and average hold times for specific strike/DTE combinations using historical data before you commit capital.
What is backtesting in options trading?
Backtesting shows how a trade would have performed historically. The platform analyzes assignment rates, win/loss distribution, and hold times for any strike/DTE combination using historical data before you commit capital. This validates your strategy with real market performance, not just theoretical models.
Frequently Asked Questions About Options Trading Tools
What is the best covered call scanner?
The best covered call scanner provides real-time data, backtested assignment probabilities, and risk-adjusted yield rankings. Days to Expiry's scanner analyzes 5+ years of historical data to show actual assignment rates, not just theoretical probabilities. Look for scanners that filter by DTE range, minimum yield, and integrate with your portfolio.
Related questions:
- •How accurate are covered call assignment rates?
- •What DTE is best for covered calls?
- •How do I choose a strike price for covered calls?
How do you calculate covered call returns?
Covered call returns consist of two components: the premium received and any stock price movement. The simple calculation is: (Premium - Commission) / Cost Basis. For annualized return: (Simple Return / Days to Expiration) × 365. Maximum profit occurs when the stock price is at or above the strike at expiration.
Related questions:
- •What is a good return for covered calls?
- •How do taxes work with covered calls?
- •What happens if my covered call is assigned?
What DTE is best for covered calls?
Most traders find 30-45 DTE optimal for covered calls. This balances time decay acceleration (theta) with flexibility. Shorter durations (7-14 DTE) offer higher annualized returns but require more active management. Longer durations (60+ DTE) provide more premium upfront but lower annualized returns.
Related questions:
- •Is 0DTE good for covered calls?
- •How often should I roll covered calls?
- •What happens if a covered call expires worthless?
How do you calculate cash secured put returns?
Cash secured put return is calculated as: Premium Received / (Strike Price × 100). For example, selling a $50 put for $1.00 premium gives a 2% return ($100 / $5,000). Annualized: (Simple Return / DTE) × 365. If assigned, your cost basis is Strike - Premium.
Related questions:
- •What is a good return for cash secured puts?
- •How much cash do I need for cash secured puts?
- •What happens if a cash secured put is assigned?
What is the wheel strategy?
The wheel strategy is a two-phase options income strategy. Phase 1: Sell cash secured puts on stocks you want to own. If assigned, you own the stock at a discount. Phase 2: Sell covered calls against the stock you now own. If assigned, your shares are called away and you restart with cash secured puts.
Related questions:
- •Is the wheel strategy profitable?
- •What stocks are best for the wheel?
- •How much capital do I need for the wheel?
What does an options scanner do?
An options scanner filters the entire options market to find opportunities matching your criteria. It analyzes thousands of contracts across multiple stocks to surface trades with your desired risk/reward profile. Professional scanners include backtesting, assignment probability analysis, and portfolio integration.
Related questions:
- •What is the best free options scanner?
- •How do I use an options screener?
- •What filters should I use for options scanning?
What is backtesting in options trading?
Options backtesting analyzes how a trade would have performed historically. It shows assignment rates, win/loss distributions, and average hold times for specific strike/DTE combinations. Backtesting validates your strategy using real market data before you commit capital.
Related questions:
- •How accurate is options backtesting?
- •What data do I need for backtesting?
- •Can I backtest options strategies for free?
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