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One question I get constantly is: How do you find stocks that actually work for running your wheel strategy?
Most traders either chase whatever’s trending on social media or randomly pick stocks they happen to know. That’s not a system — that’s guessing. And guessing doesn’t work when you’re trying to collect consistent premium from stocks that are actually worth owning if you get assigned.
I use a specific stock-screening process that narrows thousands of stocks down to a manageable list of high-probability candidates. It’s not complicated, but it is systematic.
Let’s walk through how I build it.
The Foundation: Volume, Beta and Market Cap
I start with filters that ensure I’m looking at stocks with enough liquidity and volatility to make the wheel — or turbo wheel, which is my personal variation — strategy worthwhile.
First is volume over 1 million shares. You need liquid stocks with tight spreads, or you can get crushed on execution. Then comes the key metric for premium generation: beta over 1.5.
Beta measures how much a stock tends to move relative to the broader market. A beta above 1.5 generally signals greater price movement, which can translate into higher implied volatility and richer option premiums. That volatility is especially useful for the wheel because the strategy depends on repeatedly selling cash-secured puts and covered calls.
More premium can provide greater income potential and a larger effective cushion, though it also comes with greater assignment and price risk.
For market cap, I want over $2 billion dollars. This keeps us in stocks with enough stability and institutional interest to avoid an illiquid mess. The stock also needs to be optionable — no options, no wheel strategy.
Those four filters alone reduce the universe significantly.
Adding Trend Filters to Narrow the List
Next, I add a trend component because I prefer trading with momentum, not against it. Selling puts on a stock already moving with the prevailing trend can improve the setup and reduce the risk of fighting persistent weakness. It doesn’t eliminate downside risk, but it helps align the trade with the market’s current direction.
I filter for stocks above their 50-day moving average, which cuts the list even further. You can adjust this to fit your style. Maybe the 200-day moving average matters more to you. I’ve also filtered for stocks trading 10% above the 200-day moving average, and it produces almost the same list.
Once you have the results, filter out leveraged products — double- and triple-leveraged exchange-traded funds aren’t what we’re after.
The final step is comparing at-the-money implied volatility across expirations. Some stocks offer much richer premium at longer durations. That’s the kind of structure that can make the wheel strategy sing.
This isn’t rocket science, but it is a repeatable system. And that beats hoping you picked the right stock.
Now that we’ve gone through it all, here’s the exact screener I built using this walkthrough!Â
It’s free on Finviz so try it out for yourself and make tweaks that fit your trading style.
Jeffry Turnmire
Jeffry Turnmire Trading
I host my Morning Monster livestream at 9:15 a.m. ET each weekday on YouTube, and then 30 Minutes of Awesome at 5 p.m. ET each Tuesday!
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Important Note: No one from the ProsperityPub team or Jeffry Turnmire Trading will ever message you directly on Telegram.
I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Global Funds Just Faced Their Biggest Sell-Off In 9 Months…Â
And bear in mind, we’re still in the worst month for stocks!
At 2 p.m. ET today, Chris Pulver and Roger Scott will show everyone a game plan to tackle whatever comes next and target 100% every week!
