The 60-Second Option Chain Scan

A 5-step card for evaluating a cash-secured put in under a minute.

Purpose: When you open your broker and pull up a ticker's option chain, this is the exact sequence for deciding whether to sell a cash-secured put on it — right now, today. If any step fails, skip the trade.

Step 1 — Does the underlying pass Omega's quality filter? (10 sec)

Would you be genuinely OK owning 100 shares of this stock for the next 6 months? If assigned, could you sell covered calls on it comfortably?

• ✅ Blue-chip · profitable · liquid · low bankruptcy risk · you understand the business
• ❌ Meme stock · penny stock · biotech binary · earnings crapshoot · you can't explain the business

If NO → close the tab. Do not proceed.

Step 2 — Set your DTE window (5 sec)

Target expiration: 30–45 days out.

• < 30 DTE: theta acceleration great, but you're forced to trade more often + gamma risk climbs
• > 45 DTE: too much time, capital tied up longer, worse premium-per-day

Filter the chain to weeklies/monthlies in the 30–45 DTE band.

Step 3 — Find the delta sweet spot (10 sec)

Look at the PUT side. Find strikes with delta between 0.20 and 0.30 (some brokers show as 20–30).

• 0.20 delta ≈ 80% probability the put expires worthless (you keep premium, no assignment)
• 0.30 delta ≈ 70% probability, richer premium, higher chance of assignment
• Below 0.15 delta: premium too thin to matter
• Above 0.35 delta: you're basically bidding to be assigned — do that only if you want the shares

Sweet spot for most Omega wheelers: 0.22–0.28 delta.

Step 4 — Check the premium math (15 sec)

For the strike you're eyeing, compute:

Cash tied up          = Strike × 100
Premium collected     = Bid price × 100
Return on this trade  = Premium ÷ Cash tied up
Annualized            = (Return on capital) × (365 ÷ DTE)

Target: annualized ≥ 12% on the specific trade. If lower, the market is telling you it doesn't think this strike is risky enough — go higher delta or find a different underlying.

Step 5 — Position sizing check (20 sec)

• No single position > 10% of total portfolio cash. If assigned, this stock still can't wreck you.
• No single sector > 30%. If you already have 2 tech names running, don't add MSFT — even if it passes steps 1–4.
• Reserve buffer: always keep ≥ 20% of your account in cash for rolls, opportunities, or a broad drawdown that lets you re-enter cheaper.

If any of these gates trip → skip this trade. The wheel works because you're patient. You're not going to run out of stocks to wheel.

Order-entry checklist (before you hit submit)

• Order type: limit (never market)
• Limit price: at or above the current bid — try mid-price first
• Time-in-force: day
• Cash secured (broker confirms — you actually have the money to buy 100 shares at the strike)
• No earnings inside the DTE window (check the calendar)
• Not a dividend ex-date inside the DTE window (rare early-assignment trigger)

If all boxes are checked → submit. If not → cancel.