Best choice for a naked put?

Screening Filters

1. PriceBelowMA5 / PriceBelowMA20

• Purpose: Find stocks trading below both the 5-day and 20-day moving averages.
• Rationale: A naked put is usually sold when you want either a bullish-to-neutral setup or when you’re willing to own the stock at a lower effective price. Stocks below short-term averages are often in a pullback or short-term downtrend, which can create richer put premiums. That helps identify names where premium collection may be more attractive for a put seller, especially if they are looking for a rebound or support-based entry.

2. RSI = moderate

• Purpose: Target stocks that are not extremely overbought or extremely oversold.
• Rationale: For a naked put, a “moderate” RSI is useful because it avoids names that are deeply oversold and therefore more likely to keep falling sharply. It also avoids overbought names where the put premium may not be as relevant to the current setup. Moderate RSI suggests the stock has enough room to trade normally without signaling an immediate extreme momentum condition.

3. Region = US

• Purpose: Limit the screen to U.S.-listed stocks.
• Rationale: This ensures the results are relevant to the U.S. options market, where liquidity, contract standardization, and availability of options strategies are more reliable. Since the user is asking about a naked put on ICHR, which is a U.S.-listed name, this keeps the universe aligned with the same market structure.

4. is_optionable = True

• Purpose: Only include stocks that have listed options.
• Rationale: A naked put strategy can only be executed on optionable stocks. This filter is essential because it removes names where the strategy simply cannot be implemented.

5. Option sentiments = Neutral, Bearish

• Purpose: Focus on stocks where options flow or sentiment is not strongly bullish.
• Rationale: For selling naked puts, you generally want to avoid names where traders are aggressively bullish, because those may have less attractive put-selling setups or may already be extended. Neutral to bearish sentiment can indicate cautious positioning, which often supports higher put premiums and makes the seller more compensated for taking downside risk.

6. Option IV Rank >= 40

• Purpose: Select stocks with elevated implied volatility relative to their own history.
• Rationale: Higher IV rank generally means richer option premiums. That is especially important for naked put selling, because the strategy benefits from collecting more premium upfront. An IV rank of at least 40 helps target stocks where the premium received may be sufficient to justify the downside risk.

Why Results Match:

• The filters are built for a naked put selling strategy, which works best on stocks with adequate options liquidity, elevated premium, and not overly bullish sentiment.
• ICHR has optionable U.S. listed options, and the data shows elevated implied volatility and bearish short-term technical pressure, which makes the stock relevant for put-selling analysis.
• The below-moving-average and moderate RSI conditions help find names that are not in a runaway uptrend, which is important because naked puts are usually more attractive when you want to sell into weakness or a controlled pullback rather than chase strength.
• The neutral/bearish options sentiment and higher IV rank together improve the likelihood of finding contracts with richer premiums, which is the main advantage of a naked put.

In short, these filters are appropriate because they screen for stocks where a naked put can potentially collect strong premium while staying within a liquid, optionable U.S. market, and where the technical and sentiment backdrop is more consistent with a premium-selling setup.