Cash-Secured Put Strategy: Scan for High-Yield Options
If you’ve been lurking on the charts over the last week, you might have seen some of the wild chaos in the semiconductor sector.
SMH (the big Semiconductor ETF) just saw a massive spike in volume—over 12 million shares vs the usual 7 million. Usually, that kind of volume means people are panic-selling or "diamond handing" through a bloodbath.
And it raises the question: How do we know which trades to trust when the market is acting like a caffeinated toddler?
Well, my latest custom scanner might be able to help.
Or more specifically, the "Bull88 Protocol" that it runs on promises to find the only trades worth taking in this mess.
Ok, but what the hell is a "Bull88 Scan"—and where does 20% annualized yield even fit here??
Lemme break it down as simply as I know how — ‘cause it reads, at least on paper, as a BIG freakin’ deal…
THE "VIBE CHECK" (MARKET REGIME)
At its core, my scanner is a "Goldilocks filter" for Cash-Secured Puts (CSPs). It doesn't just look for high premiums; it looks for the mathematical "sweet spot" where you get paid the most for the least amount of "getting rekt" potential.
Before looking at a single option, the scanner runs a 4-point health check on the stock:
- Step 1: Is it above the SMA20? (The trend check).
- Step 2: Is the RSI curling up? (The momentum check).
- Step 3: Is the volume dry or a desert? (The exhaustion check).
For SMH, the result was clear: Score 1/4. The scanner flagged "High Pullback Risk." This means we don't play aggressive. We play smart.
THE BREAKDOWN: 360 vs THE LOSERS
| Strike | Credit | IV Rank | The Verdict |
| 360 | $865 | 75% | The Winner. Perfect balance of safety and pay. |
| 365 | $980 | 50% | Too much risk, not enough extra juice. |
| 370 | $1,102 | 25% | The "Greed Trap." High risk, "cheap" volatility. |
| 350 | $667 | 100% | The "Scaredy Cat." Too far away to make real money. |
Why the 360 Strike is the GOAT 🐐
I ran the scan on SMH (trading at $394.40) and analyzed 884 potential contracts. It auto-picked the $360 Put expiring March 20th. While the $370 strike pays more ($1,102 vs $865), the 360 strike is the winner because:
- High IV Percentile (75%): You're getting paid a "Fear Premium" while the market is nervous.
- Delta Precision (0.23): Perfectly matches our target probability of profit.
- Safety Net (8.7%): The stock has to drop nearly 9% before you're even assigned.
The Bottom Line
Trading isn't about guessing; it's about pricing risk. By selling when IV is high at a strike with a massive cushion, the Bull88 Protocol turns market volatility into a consistent income machine.
Long story longer... it's the difference between gambling and engineering a trade.
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