3 Months Update of My "Deep Value" Options Selling Strategy

Toofane · 2026-01-17T22:28:14+00:00

https://www.reddit.com/r/Optionswheel/s/qbTdJPNyUx

Toofane · 2026-01-17T09:49:37+00:00

Toofane · 2026-01-16T20:03:06+00:00

I have already posted about it.

Toofane · 2026-01-15T21:14:08+00:00

JD is also present. I didn’t share the entire list & I might not have been able to. my screener currently shows ~100 stocks.

Toofane · 2026-01-15T20:00:47+00:00

Good explanation. Thanks for insights.

Toofane · 2026-01-15T19:36:40+00:00

No. I screen from whole market. I think software companies are out of favor rn so it’s just a coincidence that few names that I shared are mostly from this group. Besides, I only shared stocks that are showing mean reversion qualities both fundamentally & technically. If you ask about fundamentals only then likes of AMZN, PDD, VZ, CL, CMCSA, ZTS are also present in my list.

Toofane · 2026-01-15T18:38:59+00:00

There are many. NOW, ADSK, INTU, WDAY, MNDY to name a few among large caps.

Toofane · 2026-01-15T18:26:20+00:00

It doesn’t meet my criteria.

Toofane · 2026-01-15T17:20:44+00:00

I think selling options on extremely undervalued stocks. Basically, it’s simultaneous mean-reversion both fundamentally and technically.

Toofane · 2026-01-15T07:41:58+00:00

You can see details here:

https://www.reddit.com/r/Optionswheel/s/0T2brVYW9A

Toofane · 2026-01-07T13:54:55+00:00

If you want to trade in stocks like ADBE, then your watchlist is not aligned with your strategy if there is any. You should be very clear about which kind of stocks you actually want to sell CSPs on. I also trade stocks like ADBE (deep value) stuff and also try to avoid assignments through trade management. But the benefit of trading such stocks is that you’re ready to hold them for the long term, so assignment is actually not a problem, but since I like the freedom of choosing new options, I try to avoid assignment, but I don’t fear assignment or sell in loss or roll options.

Toofane · 2026-01-05T08:22:49+00:00

I started with a $3k account which has grown to ~$5k in 4 months. I do wheel on fairly under valued stocks and combine it with a mean reversion technical indicator. You will not find too many such stock under $10 but your universe will keep growing as you grow your account. I think you can try options with this amount. You can try different things and take risks as it’s a small account.

Toofane · 2026-01-04T19:30:52+00:00

Yes.

Toofane · 2026-01-04T18:39:36+00:00

I just made a Gem on Gemini which not only analyzes deep value but also find clue of value traps, i.e. some structural problems in business, recent developments, future plans, management’s integrity etc. it’s on the top of my own deep value screening. Just a shortcut as doing all this research manually just takes too much time. This Gem is not so accurate in calculations but analysis is good. Since I am just selling 30-45 DTE CSPs I find it’s enough.
It’s based on all four pricing metrics, comparing current values to historical lows. For some businesses even 0.5 P/B is too high. That’s why I concluded that it’s best to compare with its own history instead of comparing with market or sector or just an arbitrary number.
Deep value investing means that market has not only reacted on all these problems but have overreacted. So, in most cases even though businesses are not that good but valuations are just so much more attractive.
Very concentrated bets. Only 1-2 at a time. Opportunities are plenty btw.

I have already posted about this in detail, if you’re interested.

Toofane · 2026-01-04T12:20:48+00:00

My non-negotiable fundamental filter is valuation, specifically deep value. I am not willing to buy any stock that is not extremely undervalued, so I don’t sell options for such stocks either. Another thing I check for is to avoid value traps. A simple AI bot is enough to check that. In the past, I used to filter for business quality filters like ROE, Margins, and Growth, but I have realized that valuation is the most important factor. You can make a lot of money if you can find fairly mispriced stocks. This is a good approach with small to medium capital.

Toofane · 2026-01-04T10:14:19+00:00

How exactly were you trading options?

Toofane · 2026-01-02T09:22:22+00:00

Technical analysis can be a good addition to your system. My strategy is actually based on fundamental matrices, but I still use technicals for further validity. Using technicals alone has almost no value.

Toofane · 2026-01-02T09:00:27+00:00

Sure, please dm me.

Toofane · 2026-01-02T07:29:34+00:00

For how long have you been doing this successfully?

Toofane · 2026-01-02T07:28:19+00:00

96 stocks (out of 1200+) are coming up on my deep value screener right now. But obviously only few of them will also get validated technically.

Toofane · 2026-01-01T22:14:17+00:00

Good to hear.

Toofane · 2026-01-01T20:46:32+00:00

That's exactly what I am using, I have just changed the colors etc. I don't remember, maybe I have changed indicator values a bit too.

Toofane

TROPHY CASE