Options trading offers incredible opportunities, but with thousands of contracts across different strikes and expirations, finding the right trade is challenging. Options screeners help you filter through the noise and identify the best opportunities based on your specific criteria.
What is an Options Screener?
An options screener is a tool that filters options contracts based on criteria like implied volatility, volume, open interest, and the Greeks. Unlike stock screeners that filter companies, options screeners filter individual contracts or help you find stocks with interesting options activity.
Why options screeners are different: Options have additional variables like time decay, volatility, and multiple strike prices. A good options screener helps you find contracts where these factors work in your favor.
Types of Options Screeners
1. Unusual Activity Scanners
These scanners find options with unusually high volume compared to their open interest. Large institutional traders often move the options market before the stock moves, so following unusual activity can give you an edge.
Unusual Activity Example
A stock normally trades 500 call contracts daily. Today, someone bought 10,000 calls at a strike 10% above the current price expiring in two weeks.
- Volume is 20x normal levels
- Contracts were bought at the ask (aggressive buying)
- Premium paid was $500,000
This suggests someone with significant capital expects a big move higher soon.
2. Volatility Screeners
These find options with high or low implied volatility relative to their history. Selling options when IV is high and buying when IV is low is a core principle of professional options trading.
Volatility Screener Example
Finding stocks with elevated IV for credit spreads:
- IV Rank above 70 (IV higher than 70% of the past year)
- IV Percentile above 80
- Stock price above $20
- Average options volume above 1,000 contracts
These stocks offer premium selling opportunities with inflated option prices.
3. Strategy-Specific Screeners
Some screeners are designed for specific strategies like covered calls, cash-secured puts, or iron condors. They show you the best candidates for your preferred strategy.
Key Options Screening Criteria
Implied Volatility (IV)
IV tells you how expensive options are. High IV means expensive premiums (good for selling), while low IV means cheap premiums (good for buying). Most screeners show IV Rank or IV Percentile to give context.
Volume and Open Interest
Volume shows how many contracts traded today. Open interest shows total outstanding contracts. High volume with low open interest often indicates new positions being opened, which can signal institutional moves.
The Greeks
- Delta: How much the option moves per $1 stock move
- Theta: Daily time decay (important for premium sellers)
- Vega: Sensitivity to volatility changes
- Gamma: Rate of delta change
Bid-Ask Spread
Tight bid-ask spreads mean lower trading costs. Wide spreads can eat into your profits significantly. Look for options with spreads under 10% of the option price.
Best Options Screener Platforms
Barchart
Barchart offers a comprehensive free options screener with unusual activity alerts. Their "Unusual Stock Options Activity" page is a go-to resource for many traders looking for institutional flow.
Market Chameleon
Market Chameleon specializes in volatility analysis. Their IV tools help you find stocks where options are mispriced relative to historical volatility. The earnings volatility scanner is particularly useful.
Optionistics
Optionistics provides strategy-specific screeners. Their covered call and cash-secured put screeners calculate expected returns and help you find the best candidates for income strategies.
Thinkorswim
TD Ameritrade's platform includes powerful options scanning through the "Scan" tab. You can screen by any Greek, IV metrics, or custom criteria. The Sizzle Index shows unusual options activity.
CBOE LiveVol
For professional traders, LiveVol offers institutional-grade options analytics. The unusual activity and volatility tools are among the best available, though it comes with a significant price tag.
Options Screener Setups by Strategy
For Credit Spread Sellers
- IV Rank above 50
- Stock price above $30
- Options volume above 500 contracts daily
- No earnings within 14 days
- Bid-ask spread under 15% of option price
For Covered Call Writers
- Stock you would not mind owning
- Weekly options available
- IV Rank above 30
- Dividend yield above 2% (optional)
- 30-45 days to expiration
For Directional Plays
- Unusual call or put volume (5x average)
- Contracts bought at the ask price
- Premium above $100,000
- Expiration within 30 days
- Volume greater than open interest
Reading Unusual Options Activity
Not all unusual activity is bullish or bearish. Here is how to interpret what you see:
- Bought at ask: Aggressive buying, more likely directional bet
- Sold at bid: Aggressive selling, could be closing positions or opening shorts
- Sweep orders: Large orders split across exchanges for speed, suggests urgency
- Block trades: Large single orders, often institutional
Important: Unusual activity does not guarantee the stock will move in that direction. The trader could be hedging, rolling positions, or even wrong. Use it as one input, not your entire thesis.
Common Options Screener Mistakes
- Ignoring liquidity: An option might look perfect, but if there are only 10 contracts of open interest, you will struggle to get good fills.
- Chasing every unusual activity alert: Not every large order is a winning signal. Many are hedges or spread trades.
- Forgetting about earnings: IV spikes before earnings and crashes after. Factor this into your screening.
- Only looking at one metric: High IV alone does not make a good trade. Combine multiple criteria.
Building a Consistent Screening Routine
- Morning scan: Check unusual overnight activity and pre-market moves
- Volatility check: Review IV rank across your watchlist
- Strategy match: Run screeners specific to your current strategy
- Liquidity filter: Eliminate anything with poor bid-ask spreads
- Final review: Check the chart and news before trading
Track Your Options Trades Automatically
Pro Trader Dashboard syncs with your broker to track all options trades. See which strategies work best, analyze your Greeks exposure, and improve your options trading results.
Summary
Options screeners are powerful tools that help you find opportunities in the complex options market. Whether you are looking for unusual institutional activity, high IV for premium selling, or the perfect covered call candidate, the right screener saves you hours and improves your results. Start with free tools like Barchart, learn to interpret the data correctly, and always verify screener results with your own analysis.
Ready to explore more trading tools? Check out our stock screener guide or learn about backtesting software.