Sorry for the noob questions but I'm looking at how to implement such a stock screener and I don't see some of these metrics in Finviz, like IV or options volume. Would I need a premium subscription to be able to use these metrics in a screener?
On the other hand I do have most of those metrics in my IBKR account but not sure if they all match. For IV I have options implied volatility % and I also have IV/Hist. Vol % (ratio of the IV over the historical volatility as a %). Which of these 2 would you use for screening?
Its even better that you have your IBKR, no need to buy any additional subscriptions.
For IBKR you can use the IV/Hist Vol% ratio instead of raw IV. Raw IV doesn't tell you much - 45% IV on KO is crazy high, but on TSLA it's just Tuesday. So, the ratio shows you how elevated current IV is compared to what that stock normally does.
I target IV/HV between 1.2 - 2.0. Under 1.0 means premiums suck, over 2.5 usually means something big is about to happen that you don't want to be selling into.
How to put this all tgether:
1. You can use Finviz for basic stuff (price, market cap, fundamentals)
2. Then export to IBKR scanner
3. Add IV/HV, option volume ≥1000/day
4. Check charts + do the math
Also throw in open interest ≥10k or you'll get burned on spreads when you try to roll.
IBKR's scanner is way better for the options stuff anyway. I'd use Finviz to narrow it down first, then do the real filtering in IBKR.
Hi Mike,
Sorry for the noob questions but I'm looking at how to implement such a stock screener and I don't see some of these metrics in Finviz, like IV or options volume. Would I need a premium subscription to be able to use these metrics in a screener?
On the other hand I do have most of those metrics in my IBKR account but not sure if they all match. For IV I have options implied volatility % and I also have IV/Hist. Vol % (ratio of the IV over the historical volatility as a %). Which of these 2 would you use for screening?
Hi Omar,
Its even better that you have your IBKR, no need to buy any additional subscriptions.
For IBKR you can use the IV/Hist Vol% ratio instead of raw IV. Raw IV doesn't tell you much - 45% IV on KO is crazy high, but on TSLA it's just Tuesday. So, the ratio shows you how elevated current IV is compared to what that stock normally does.
I target IV/HV between 1.2 - 2.0. Under 1.0 means premiums suck, over 2.5 usually means something big is about to happen that you don't want to be selling into.
How to put this all tgether:
1. You can use Finviz for basic stuff (price, market cap, fundamentals)
2. Then export to IBKR scanner
3. Add IV/HV, option volume ≥1000/day
4. Check charts + do the math
Also throw in open interest ≥10k or you'll get burned on spreads when you try to roll.
IBKR's scanner is way better for the options stuff anyway. I'd use Finviz to narrow it down first, then do the real filtering in IBKR.
(not financial advice)