Short strangles on stocks

Discussion in 'Options' started by falcon, Dec 1, 2011.

  1. falcon


    How can I go about finding as many different stocks as possible to use for a short strangle strategy, my broker doesn't have a sufficient screener. I'm looking for stocks that can all offset each other from dramatic moves in the market.
  2. stoic


    Good luck with this one.
  3. falcon


    your knowledge and wisdon is astounding, keep at it.
  4. I don't know the answer since I don't really use any screeners...BUT...You might want to rephrase or elaborate on your question.

    You can do a short strangle strategy on any stock with an options market, so answer to question #1 would be "all of them" or "thousands of them".

    I assume you are looking to filter on specific criteria. What criteria are you looking for? IV? HV? IV vs. HV? Volume? Earnings dates? Liquidity? If you define the criteria you are looking for you might get a valid answer.

    As for question #2, you could try to build a system of stocks where all the stocks hedge or offset each other to reduce volatility. Short strangles would NOT be that strategy.
  5. spindr0


    Not really clear what you're seeking. Are you looking for pairs of stocks that correlate or is this a single stock strategy?
  6. stoic


    You have to look at what your asking!!

    I'd like to find a broker web site that I can use that will show me stocks that I can trade option strategies on and never lose....

    based on what your looking for as described....there's no such place.
  7. falcon


    Ok.. I'll try and be clearer with my question. What I'm after is somekind of screener that allows me to filter through every stock currently trading on the US market (low priced ETFs included), so I can then determine which ones are better suited to this strategy.

    I would prefer an ETF however part of my intended strategy is to hedge with the UL when need be, yet they are all too pricey for this. Therefore a handful of stocks that can survive big market moves from sectors that aren't correlated could suit.
  8. 76132


    So you want stocks/ETFs that are uncorrelated with each other?
  9. falcon


    Thats correct. The more uncorrelated the better and preferably from different asset classes, however they all need to be able to handle a market fall. Any takers?
  10. 76132


    This wouldn't work?

    Granted you need to first have a stock/etf in mind.
    #10     Dec 1, 2011