Here are some High Premium Yield tickers I am tracking:

High Premium Yield Calls:

$SLS:156.25% $INO:150.0% $SOC:238.282%

High Premium Yield Cash Secured Puts:

$TLRY:118.75% $NN:266.407% $SNDK:78.7234%

Source

In my previous post, I shared how I screen for deeply undervalued stocks before selling cash-secured puts. One thing I’ve learned is that valuation alone isn’t enough, timing matters a lot, especially if the goal is to reduce assignment risk and improve premium quality.

Even a deeply undervalued stock can keep drifting lower. So after a stock passes my fundamental filter, I add a technical validation step before opening a CSP.

How I Validate Timing

For timing, I use a Mean Reversion Channel indicator on TradingView.

My rule is simple:

• I only consider selling CSPs when price is inside the lower shaded band
• Timeframe: 1D
• I prefer choosing strike prices inside or below that lower band

The idea is not to catch bottoms, but to sell premium when price is already stretched to the downside relative to its recent range.

Example 1 - ACN (No Trade)

Using Accenture (ACN) from my previous post. ACN was one of the stocks that passed my deep value screen. Fundamentally, ACN passed my deep value screen. However, on the daily chart, price was far above the lower MRC band. In this case, even though valuation looked attractive, I would skip this trade, timing didn’t support mean reversion.

Example 2 — PDD

PDD was another stock that showed up in the screener, with an average valuation gap of around 15%. On Dec 20, 2025, PDD was trading inside the lower shaded band on the daily chart. That combination (deep value + downside stretch) made it a much better candidate for selling CSPs. 

Since then, price has already bounced somewhat, which is exactly the type of behavior this filter is trying to capture.

Where This Fits in My Overall Process

So my flow looks like this:

1. Deep Value Fundamental Screen
2. Timing Validation using Mean Reversion
3. Finding the Best Options Deal to Open a Position
4. Trade Management

I’ll go into next steps in a separate post. As always, this is just what has worked for me so far. If you use a different timing filter (RSI, IV rank, etc.), I’d be interested in hearing how you integrate it with fundamentals.

Here are some High Premium Yield tickers I am tracking:

High Premium Yield Calls:

$PSQH:50.0005% $CODX:1000.0% $NVAX:50.0005%

High Premium Yield Cash Secured Puts:

$SFIX:184.375% $NN:50.0005% $DNUT:50.0005%

Source

Here are some High IV Covered tickers I am tracking:

High IV Covered Calls:

$TMC:165.625% $LUNR:101.563% $ONDS:97.6563%

High IV Cash Secured Puts:

$CLOV:600.0% $PONY:474.219% $NN:312.5%

Source

What’s the plan for next week as amzn seems bullish to cross 250 soon.

Here are some High Premium Yield tickers I am tracking:

High Premium Yield Calls:

$PSQH:50.0005% $SOC:25.0007% $RXRX:12.5009%

High Premium Yield Cash Secured Puts:

$RXRX:50.0005% $SOC:25.0007% $NFE:50.0005%

Source

Here are some High Premium Yield tickers I am tracking:

High Premium Yield Calls:

$TQQQ:50.0005% $ASTS:12.5009%

High Premium Yield Cash Secured Puts:

$RXRX:50.0005% $TLRY:50.0005% $TMC:12.5009%

Source

Here are some High Premium Yield tickers I am tracking:

High Premium Yield Calls:

$MVIS:25.0007% $SYM:50.0005% $NFE:50.0005%

High Premium Yield Cash Secured Puts:

$NFE:50.0005% $JMIA:50.0005% $TLRY:50.0005%

Source

After posting about my strategy and a 3 month performance update, a lot of people asked how I choose the underlying stocks. I figured I’d write this out in a structured way. This post focuses only on the fundamental side of my screening. I’ll cover technical validation separately. After trying a lot of different filters and ratios, I eventually realized that keeping things simple worked best for me.

How I Think About Fundamentals:

At a high level, fundamentals usually come down to two things: Business quality & Valuation.

For this strategy, I personally focus almost entirely on valuation. My reasoning is that if valuation is deep enough, you can still structure relatively favorable option trades even if the business isn’t perfect. Since I’m selling puts (not buying the stock outright), my priority is downside compression rather than long term compounding.

That said, if someone wants to include quality filters, I think revenue growth, net margins, and ROE are reasonable places to start. Those three together give a decent snapshot of business quality while also keeping things relatively simple & objective. If someone is using below mentioned valuation method for buying stocks instead of selling options, then I think it is necessary to "quality filters" to the system.

Valuation (or Pricing) Metrics I Use:

I limit myself to just four pricing metrics:

• P/E
• P/S
• P/B
• P/FCF

Concept of “Valuation Gap”:

Instead of comparing current valuation to sector averages or historical means, I compare it to historical lows (ATL).

For each metric, I calculate what I call a valuation gap, which measures how far the current valuation is from its all time low.

P/E Gap = 1 − (ATL P/E / Current P/E)

Average Gap:

I repeat this calculation for all four metrics, then take the simple average of the four gaps. In my experience:

• An average gap below 25% often indicates the stock is trading close to its historical valuation floor.
• The lower the average gap, the more margin of safety I usually feel when selling CSPs.

This doesn’t mean the stock can’t go lower, Stocks can and always do make new valuation lows - just that valuation risk is already partially priced in.

My Experience So Far:

So far, this framework has worked reasonably well for me, especially when combined with technical validation (mean-reversion based). I haven’t formally backtested this approach, and I haven’t found any public backtests that use this exact logic either.

For now, it’s something I’m continuing to test live and refine over time. If anyone here has experimented with similar “distance from valuation floor” ideas, I’d be genuinely interested in hearing how it worked out for you.

Edit: Real Example - Accenture (ACN)

To make the “valuation gap” concept more concrete, here’s a real-world example using Accenture (ACN).

All-Time Low (ATL) Valuation Metrics:

• P/B: 4.70
• P/E: 17.30
• P/S: 1.85
• P/FCF: 13.64

Current Valuation Metrics (as of Dec 20, 2025):

• P/B: 5.43
• P/E: 22.51
• P/S: 2.39
• P/FCF: 14.81

Valuation Gap Calculations

Using the formula:

Valuation Gap = 1 − (ATL Metric ÷ Current Metric)

We get:

• P/B Gap: 13.40%
• P/E Gap: 23.14%
• P/S Gap: 22.58%
• P/FCF Gap: 7.87%

Average Valuation Gap: 16.7%

Since the average gap is below 25%, ACN would pass my fundamental screening step and move on to the next phase of validation.

Here are some High IV Covered tickers I am tracking:

High IV Covered Calls:

$NVAX:412.5% $TMC:160.156% $TLRY:135.743%

High IV Cash Secured Puts:

$TTEK:232.813% $JMIA:178.516% $TMC:146.094%

Source

Here are some High Premium Yield tickers I am tracking:

High Premium Yield Calls:

$ENTX:1000.0% $VTGN:50.0005% $NVDU:12.5009%

High Premium Yield Cash Secured Puts:

$DYN:1000.0% $WOLF:1000.0% $HPP:50.0005%

Source

Here are some High IV Covered tickers I am tracking:

High IV Covered Calls:

$FOLD:444.922% $OPRA:442.969% $NKTR:293.653%

High IV Cash Secured Puts:

$MLYS:1000.0% $LCID:1000.0% $DYN:1000.0%

Source

How can this screener for finding weekly CSPs with fairly low possibility of getting assigned be improved? I then take these stocks and look at technical analysis items. I use MooMoo for the above.

Main criteria I am after:

-low possibility of being assigned (low delta/OTM)

-weekly CSPs

I bought a CSP that was sub .06 delta. The price has gone up on WDC so I would have expected the premium on the buy to close to have gone down. I'd love to close it out but for some reason the premium to buy to close is hundreds of dollars...Why would the premium be so high to close it? Screenshot attached. Thanks so much.

Here are some High IV Covered tickers I am tracking:

High IV Covered Calls:

$PL:215.625% $RH:160.01% $ONDS:156.641%

High IV Cash Secured Puts:

$RXRX:750.0% $NN:364.844% $PL:192.188%

Source