Options traders who sell premium have cracked the code on consistent income generation. Instead of betting on big directional moves, they collect payments from other traders and let time decay work in their favor.
The statistics back this up. Most options contracts expire worthless, which means premium sellers win more often than they lose. But finding the right opportunities in a market with millions of option contracts? That requires the right screening tools.
This guide breaks down the best options screeners for premium selling strategies. Whether you’re selling covered calls, cash-secured puts, credit spreads, or iron condors, you’ll find the tools that fit your approach.
What is Premium Selling?
Premium selling is the practice of writing options contracts and collecting the premium upfront. You take on an obligation in exchange for immediate payment.
The core strategies include:
Covered Calls: You own 100 shares of stock and sell a call option against them. You collect premium and agree to sell your shares if the stock rises above the strike price.
Cash-Secured Puts: You sell a put option and set aside cash to buy the stock if assigned. You collect premium and potentially acquire stock at a discount.
Credit Spreads: You sell one option and buy another at a different strike to limit risk. The premium collected exceeds the premium paid, creating a net credit.
Iron Condors: You sell both a put spread and a call spread simultaneously, betting the stock stays within a range. You profit from time decay on both sides.
The Wheel Strategy: A combination approach where you sell cash-secured puts until assigned, then sell covered calls on the shares you now own.
All these strategies share a common thread: you’re selling options to collect premium rather than buying options hoping for big moves.
Why Premium Selling Works
The math favors premium sellers for a few reasons.
Time Decay is Your Friend
Options lose value as expiration approaches. When you sell premium, theta (time decay) works for you instead of against you. Every day that passes without significant price movement puts money in your pocket.
Volatility Premium
The market typically overprices options relative to actual stock movement. Implied volatility tends to run higher than realized volatility, which means you’re often collecting more premium than the risk justifies.
Probability Edge
Out-of-the-money options, which make up most premium-selling trades, usually expire worthless. If you sell an option with a 30% chance of being in-the-money, you have a 70% probability of keeping the full premium.
Consistent Returns
Premium selling doesn’t produce home runs. Instead, it generates steady 1-3% monthly returns when done well. That compounds to 20-40% annually, which beats most buy-and-hold strategies without the volatility.
The trade-off? Your upside is capped. You collect the premium and that’s it. But for traders focused on income rather than massive gains, that’s a feature, not a bug.
What Makes a Good Premium Selling Screener?
Not all options screeners work well for premium sellers. The ones that do share certain characteristics.
Strategy-Specific Filtering
You need to filter by the strategy you’re trading. A good screener lets you search specifically for covered calls, cash-secured puts, credit spreads, or iron condors. Generic options screeners that just show random contracts waste your time.
Premium Yield Calculations
The screener should show premium as a percentage of capital at risk. This lets you compare opportunities on an apples-to-apples basis. A $2 premium on a $50 stock (4%) is better than a $3 premium on a $100 stock (3%).
Probability Metrics
You want to see probability of profit or probability of the option expiring worthless. This helps you balance premium collected against likelihood of success.
IV Rank and Percentile
Premium selling works best when implied volatility is elevated. Good screeners show IV rank or percentile so you can tell if current premiums are high or low relative to history.
Liquidity Filters
Illiquid options cost you money on every trade. The screener should let you filter for minimum volume, open interest, and bid-ask spreads.
Earnings and Events
Premium sellers need to know about upcoming catalysts. The screener should flag earnings dates, ex-dividend dates, and other events that could complicate your trade.
Greeks Display
Delta, theta, and vega matter for premium selling. Delta tells you how much the option will move with the stock. Theta shows your daily profit from time decay. Vega indicates your exposure to volatility changes.
Best All-Around Premium Selling Screeners
These tools work well across multiple premium selling strategies. They’re the Swiss Army knives of options screening.
Market Chameleon
Market Chameleon is built for premium sellers. The platform focuses heavily on volatility analysis, which is exactly what you need when deciding whether to sell premium.
The unusual options activity scanner helps you spot when big players are moving. The pre-earnings analysis tools show you historical patterns around earnings, which is crucial if you’re trying to capture or avoid the IV spike.
The covered call and put screener lets you filter by premium percentage, days to expiration, and IV percentile. You can screen for specific strategies or just browse high-premium opportunities across the market.
The downside is complexity. Market Chameleon throws a lot of data at you, and it takes time to learn where everything lives. But if you’re serious about premium selling, the depth here justifies the learning curve.
Best For: Experienced premium sellers who want institutional-level data and are willing to pay $99/month for it.
Pricing: $99/month with 7-day free trial
Website: https://marketchameleon.com
Barchart
Barchart offers dedicated screeners for covered calls, cash-secured puts, and credit spreads. Each one is customized for that specific strategy with relevant filters and metrics.
The covered call screener shows you theoretical return, downside protection, and earnings dates all in one view. The cash-secured put screener calculates your cost basis if assigned and shows dividend information.
The interface looks dated, but functionality matters more than aesthetics. You can save custom screens, set alerts, and export data for further analysis.
The free version gives you basic screening capabilities. Barchart Premier ($29.95/month) unlocks real-time data, advanced filtering, and automated email alerts.
For the price, it’s hard to beat. You get solid screening tools for multiple strategies without spending $100/month.
Best For: Intermediate traders who want strategy-specific screeners at a reasonable price.
Pricing: Free basic version; Barchart Premier at $29.95/month
Website: https://www.barchart.com/options/income-strategies
OptionStrat
OptionStrat brings modern design to options screening. The visual approach makes it easy to see profit/loss potential before you enter a trade.
The platform supports all premium selling strategies. You can screen for covered calls, cash-secured puts, credit spreads, iron condors, butterflies, and more. The strategy builder lets you construct multi-leg positions and see exactly how they’ll perform under different scenarios.
The probability calculations are excellent. OptionStrat shows you the chance of profit, expected value, and max risk for every trade. This helps you compare opportunities objectively.
The Live Flow tier ($59.99/month) adds unusual options activity tracking, which helps you spot when institutional traders are setting up similar premium-selling trades.
The mobile app works well, which matters if you need to manage positions on the go.
Best For: Visual learners who want modern tools and probability-based screening.
Pricing: Live Tools (basic) $19.99/month; Live Flow (with options flow) $59.99/month; 7-day free trial
Website: https://optionstrat.com
Unusual Whales
Unusual Whales started as a flow tracker but has evolved into a comprehensive premium selling platform. The screener shows you where other traders are setting up premium-selling positions.
The flow data integration is the standout feature. When you’re looking at a potential covered call, you can see if there’s unusual buying or selling activity in that strike. This gives you a peek at what bigger players might be doing.
The platform tracks millions of contracts daily and surfaces the ones that matter. You can filter by strategy type, premium yield, IV percentile, and dozens of other criteria.
The alert system is solid. Set your parameters and get notified when new opportunities appear that match your strategy.
Pricing is competitive considering you’re getting flow data on top of screening tools.
Best For: Active premium sellers who want flow data to validate their trade ideas.
Pricing: Starter tier around $30-35/month; higher tiers for advanced features
Website: https://unusualwhales.com
Strategy-Specific Tools and Considerations
Different premium selling strategies have different screening needs. Here’s what matters for each approach.
For Covered Calls
Covered call traders need specific data points that other premium sellers don’t care about as much.
What to Look For:
- Return if called (upside if stock rises above strike)
- Return if flat (premium collected if stock doesn’t move)
- Downside protection (how far stock can drop before you lose money)
- Ex-dividend dates (to avoid early assignment)
- Earnings dates (to avoid or capture volatility spike)
Top Tools:
- optionDash – Free tool with proprietary stock scoring (Value, Quality, Trend scores)
- Barchart – Dedicated covered call screener with all relevant metrics
- Born To Sell – Focused exclusively on high-yield covered calls
- Snider Advisors – Free screener built for the Snider Method
Deep Dive: We’ve created a comprehensive guide specifically for covered call screening. Check out our Best Covered Call Screeners article for detailed reviews, step-by-step screening guides, and real trade examples.
For Cash-Secured Puts
Cash-secured put sellers are essentially trying to buy stock at a discount while collecting premium in the meantime.
What to Look For:
- Premium as percentage of strike price
- Net cost basis if assigned (strike minus premium)
- Support levels below the strike
- Put/call ratio to gauge sentiment
- Delta around 0.20-0.30 for conservative trades
Top Tools:
- optionDash – Includes cash-secured put screener alongside covered calls
- Barchart – Has a dedicated screener for put selling
- Option Samurai – Good filtering for conservative put selling strategies
Screening Approach: Start with stocks you actually want to own long-term. Filter for puts with 30-45 days to expiration. Look for strikes 5-10% below current price with premium yielding 1-3% per month. Make sure there’s no earnings before expiration.
For Credit Spreads
Credit spread traders need to see the spread as a unit, not just individual options.
What to Look For:
- Net credit received
- Maximum risk (spread width minus credit)
- Probability of profit
- Distance to short strike (buffer zone)
- Theta decay on the position
Top Tools:
- Market Chameleon – Has dedicated bull put and bear call spread screeners
- Quantcha – Probability-based analysis for spreads
- OptionStrat – Visual spread builder with scenario analysis
- ORATS – Advanced spread analytics with backtesting
Strategy Notes: Bull put spreads work in neutral to bullish markets. Bear call spreads work in neutral to bearish markets. Most traders target 60-80% probability of profit and aim to close at 50% of max profit.
For Iron Condors
Iron condor traders are selling volatility. They profit when stocks trade sideways and volatility contracts.
What to Look For:
- IV rank above 50 (elevated volatility)
- Expected move for the timeframe
- Historical price ranges
- Upcoming events that could cause breakouts
- Width of profitable zone
Top Tools:
- Market Chameleon – Dedicated iron condor screener with historical analysis
- tastytrade/tastyworks – Built for defined-risk premium selling
- OptionStrat – Visual iron condor builder
- Post Options – Real-time scanner for iron condor opportunities
Screening Approach: Look for stocks with high IV rank but stable price action. Screen for setups where the short strikes are outside the expected move. Target 50-70% probability of profit. Consider 30-45 day expirations for the best balance of premium and theta decay.
For The Wheel Strategy
The Wheel combines cash-secured puts and covered calls in a systematic approach.
What to Look For:
- Stocks you want to own long-term
- Stable companies with decent volatility
- Consistent options liquidity
- Regular dividend payers (bonus income)
- IV rank 30-70 (sweet spot)
Top Tools:
- optionDash – Supports both legs of the Wheel
- Barchart – Separate screeners for puts and calls
- Option Samurai – Has pre-built Wheel strategy scans
- Wheel Decision – Dedicated tool for Wheel traders
Workflow: Screen for cash-secured puts on quality stocks. When assigned, switch to the covered call screener for the same stock. Sell calls until assigned. Repeat. The beauty of the Wheel is its simplicity – you’re just alternating between two strategies.
How Different Screeners Compare
Here’s a quick reference to help you choose based on your specific needs:
By Strategy Focus
Best for Covered Calls:
- optionDash (free, focused)
- Born To Sell (high-yield focus)
- Barchart (comprehensive)
Best for Cash-Secured Puts:
- optionDash (includes CSP screener)
- Barchart (dedicated screener)
- Snider Advisors (free tool)
Best for Credit Spreads:
- Market Chameleon (detailed spread analysis)
- Quantcha (probability-based)
- ORATS (institutional-grade)
Best for Iron Condors:
- Market Chameleon (historical patterns)
- tastytrade (built for defined risk)
- OptionStrat (visual modeling)
Best for Multiple Strategies:
- OptionStrat (all strategies, modern interface)
- Barchart (dedicated screeners for each)
- Market Chameleon (comprehensive but complex)
By Experience Level
Beginners:
- optionDash (simplest interface, free)
- Barchart (straightforward, affordable)
- OptionStrat (great visuals)
Intermediate:
- OptionStrat (good balance of features)
- Option Samurai (powerful but approachable)
- Unusual Whales (adds flow data)
Advanced:
- Market Chameleon (institutional depth)
- ORATS (quant-focused)
- Quantcha (probability modeling)
By Budget
Free Options:
- optionDash (covered calls and CSPs)
- Barchart basic version
- Snider Advisors free screener
- Broker tools (Fidelity, Schwab, TD Ameritrade)
Under $50/month:
- OptionStrat Live Tools ($19.99)
- Barchart Premier ($29.95)
- Unusual Whales Starter ($30-35)
- optionDash premium
$50-100/month:
- OptionStrat Live Flow ($59.99)
- Option Samurai Advanced ($59)
- BlackBoxStocks ($79.92 annual)
- Market Chameleon ($99)
Over $100/month:
- ORATS (institutional tools)
- Advanced tiers on major platforms
Premium Selling Best Practices
Having a good screener is one thing. Using it effectively is another. Here are the principles that separate consistent winners from everyone else.
Start With High IV Rank
Don’t sell premium when volatility is low. You’re not getting paid enough for the risk.
Set your screener to filter for IV rank or percentile above 50. This means current volatility is elevated compared to the past year. When IV is high, option prices are rich, which means you collect more premium.
The best time to sell premium is when everyone else is scared. Market pullbacks, earnings season, and geopolitical events all spike volatility. That’s when premiums get fat.
Understand Probability vs. Premium
There’s always a trade-off between probability of profit and premium collected.
High probability trades (70-80% chance of profit) collect less premium. Low probability trades (30-40% chance) collect more premium but win less often.
Most successful premium sellers target the middle ground: 60-70% probability of profit with moderate premium yields. This gives you consistent wins without leaving too much money on the table.
Manage Position Size
This is where most traders blow up their accounts.
Never put more than 5% of your portfolio in a single premium-selling trade. Ideally, keep individual positions at 2-3%.
If you’re trading defined-risk strategies like credit spreads or iron condors, you can go slightly larger because your max loss is capped. If you’re selling naked puts or calls, stay small because losses can be substantial.
Take Profits Early
Don’t hold premium-selling trades until expiration trying to squeeze out every penny.
Most professionals close winners at 50-75% of max profit. If you sold a credit spread for $1.00 and it’s now worth $0.25, buy it back and bank the $0.75 profit. Free up your capital for new trades.
The last 25-50% of profit takes the most time and carries the most risk. It’s not worth holding for.
Avoid Earnings Unless That’s Your Strategy
Implied volatility spikes before earnings then crashes afterward. This is the “volatility crush.”
If you’re not specifically trading pre-earnings premium, stay away from stocks reporting in the next 2-4 weeks. Use your screener to filter out these positions.
If you DO want to trade earnings, sell premium a few days before the report to capture the IV spike, then close immediately after earnings to lock in the volatility crush profit.
Diversify Across Strategies
Don’t just do covered calls or just do credit spreads. Mix your strategies based on market conditions.
In bull markets: Covered calls and cash-secured puts work well.
In bear markets: Credit call spreads and cash-secured puts at lower strikes.
In sideways markets: Iron condors and covered calls shine.
In volatile markets: Wide credit spreads to capture fat premiums.
Having multiple strategies in your toolkit lets you adapt to whatever the market is doing.
Common Premium Selling Mistakes
Even experienced traders fall into these traps. Here’s what to avoid.
Mistake #1: Chasing Premium Without Considering Risk
You see a covered call yielding 10% monthly. Amazing, right?
Wrong. That premium is high because the stock is volatile and could easily blow through your strike. Or the company is garbage and might crater.
Always ask WHY the premium is high before taking the trade. High premium usually means high risk.
Mistake #2: Ignoring Liquidity
You find a great-looking trade, but the bid-ask spread is $0.50 wide on a $2 option. That’s 25% slippage.
Stick to liquid options where you can get filled near mid-price. Set minimum volume and open interest thresholds in your screener. This single rule will save you thousands in the long run.
Mistake #3: Selling Premium in Low Volatility
When IV rank is below 30, options are cheap. Selling them means you’re not getting paid enough for the risk you’re taking.
Wait for IV to spike. It always does eventually. Be patient and only sell premium when you’re getting good prices.
Mistake #4: Holding Losers Too Long
Your trade goes against you. Instead of closing or adjusting, you hold on hoping it’ll come back.
This is how small losses turn into account-destroying disasters.
Set a maximum loss threshold – many traders use 2-3x the premium collected – and stick to it. Close or adjust when you hit that level. No exceptions.
Mistake #5: Over-Concentrating in One Sector
You love tech stocks, so all your covered calls and cash-secured puts are in tech names.
Then the tech sector tanks, and every position gets hit simultaneously. Diversify across sectors and market caps to spread risk.
Mistake #6: Not Tracking Your Results
You take trade after trade without knowing which setups actually work for you.
Keep a log. Track which strategies, which stocks, which setups produce profits. Double down on what works and stop doing what doesn’t.
Most premium sellers who succeed long-term are incredibly systematic. They know exactly what works because they track everything.
How to Choose Your Premium Selling Screener
With so many tools available, how do you pick?
Start With Your Primary Strategy
If you’re 80% focused on covered calls, get a tool that excels at covered call screening. Don’t pay for iron condor analytics you won’t use.
Match the tool to your actual trading activity.
Consider Your Experience Level
Beginners should prioritize simple, visual tools with pre-built scans. Advanced traders can handle complex platforms with deep customization.
Don’t buy a Formula 1 race car when you’re still learning to drive.
Test Before Committing
Almost every premium screener offers a free trial. Use it.
Run your actual screening process during the trial. See if the data quality is good, the interface makes sense, and the results are actionable.
One week of real usage tells you more than any review.
Factor in Total Cost
A $99/month screener might seem expensive, but if it helps you make one extra good trade per month, it pays for itself.
On the flip side, a free tool that takes 3x as long to find trades costs you in time and opportunity.
Calculate the real ROI including your time.
Look for Multi-Strategy Support If You Plan to Evolve
Most traders start with one strategy then branch out. If you’re selling covered calls now but might try credit spreads later, choose a tool that supports both.
This saves you from learning a new platform down the road.
Building Your Premium Selling System
The best premium sellers operate like machines. They have a repeatable process that they run consistently.
Here’s a framework to build your own system:
Daily Routine (10-15 minutes):
- Check existing positions for any needed adjustments
- Run your primary screener with saved filters
- Review top 5-10 opportunities
- Research 1-2 candidates in depth
- Execute trades if setups meet all criteria
Weekly Review (30 minutes):
- Evaluate closed trades – what worked, what didn’t
- Adjust screening criteria based on current market conditions
- Review upcoming earnings for existing positions
- Plan next week’s trades
Monthly Analysis (1-2 hours):
- Calculate total returns for the month
- Review win rate and average profit per trade
- Identify which strategies performed best
- Adjust position sizing and strategy mix if needed
The key is consistency. Premium selling rewards discipline and process over heroic trades.
The Bottom Line on Premium Selling Screeners
Premium selling is one of the few trading approaches with a genuine statistical edge. Most options expire worthless, time decay is constant, and volatility tends to be overpriced.
But you need good tools to execute effectively. Screening millions of option contracts manually is impossible.
The screeners in this guide give you different angles on the same goal: finding high-probability premium-selling opportunities that fit your strategy and risk tolerance.
For most traders, a combination approach works best:
- Use a free screener (Barchart, optionDash, broker tools) for daily scanning
- Add one paid tool that fits your primary strategy for deeper analysis
- Test multiple platforms during free trials to find what clicks for you
The best screener is the one you’ll actually use consistently. Find a tool that fits your workflow, learn it inside and out, and stick with it.
Premium selling isn’t exciting. It’s not about hitting home runs or making 1000% returns. It’s about showing up daily, running your process, collecting premium, and letting the probabilities work in your favor over time.
With the right screening tools and a disciplined approach, premium selling can generate steady income through any market condition. That’s the real edge.