Stock Screeners: Finding US Stocks with Options

In the vast world of the stock market, finding the right investment can be a daunting task. However, with the help of stock screeners, investors can streamline their search and identify US stocks with options that align with their investment strategy. This article will explore the benefits of using stock screeners and provide valuable insights into how they can assist investors in making informed decisions.

Understanding Stock Screeners

A stock screener is a powerful tool that allows investors to filter through thousands of stocks and identify those that meet specific criteria. By setting parameters such as market capitalization, price-to-earnings ratio, and dividend yield, investors can narrow down their search to a manageable number of potential investments.

Why Focus on US Stocks with Options?

Investing in stocks with options can offer investors additional flexibility and potential for profit. Options provide the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific timeframe. This can be particularly beneficial for traders looking to hedge their positions or speculate on market movements.

Key Features of Stock Screeners for US Stocks with Options

1. Options Volume: This metric indicates the number of options contracts traded for a particular stock. A higher volume suggests greater interest and liquidity in the options market.

2. Open Interest: Open interest measures the total number of options contracts that are currently outstanding. Higher open interest can indicate strong market sentiment and potential for volatility.

3. Implied Volatility: This metric measures the market's expectation of future price movements. Higher implied volatility can lead to higher option premiums, making them more attractive for speculative trading.

4. Strike Price: The strike price is the predetermined price at which an option can be exercised. Investors can use this information to identify stocks with options that are within their desired price range.

5. Expiry Date: The expiry date is the date on which an option contract becomes void. Investors can use this information to plan their trades and manage their risk.

Using Stock Screeners to Identify US Stocks with Options

To find US stocks with options, investors can use a stock screener with the following criteria:

• Market Cap: Set a market cap range to focus on stocks within a specific size category.
• Options Volume: Set a minimum options volume to ensure liquidity in the options market.
• Open Interest: Set a minimum open interest to identify stocks with significant interest from option traders.
• Implied Volatility: Set a range for implied volatility to find stocks with potential for price movement.
• Strike Price: Set a range for the strike price to identify options that align with your investment strategy.
• Expiry Date: Set a range for the expiry date to plan your trades accordingly.

Case Study: Apple Inc. (AAPL)

Let's say you are an investor looking for a tech stock with options. Using a stock screener, you set the following criteria:

• Market Cap: 1 billion to 500 billion
• Options Volume: Minimum of 10,000
• Open Interest: Minimum of 100,000
• Implied Volatility: 20% to 30%
• Strike Price: 150 to 200
• Expiry Date: 3 months

The stock screener returns Apple Inc. (AAPL) as a potential investment. With a strong market cap, significant options volume, and high open interest, AAPL appears to be an attractive option for investors seeking exposure to the tech sector.

In conclusion, stock screeners are invaluable tools for investors looking to identify US stocks with options. By utilizing the right criteria and leveraging the power of stock screeners, investors can make informed decisions and potentially increase their chances of success in the stock market.