Options Income · Equity Quality · Valuation Overlay

Wheel Strategy Stocks —Undervalued & Income-Generating

Most wheel screeners scan contracts for yield. Equity Rank applies 19+ valuation methods and a quality score before surfacing wheel candidates — so you start from businesses the model considers attractively valued, not just liquid tickers.

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19+ valuation methods

DCF, Graham Number, EPV, P/E, EV/EBITDA, PEG, DDM, and more — a consensus fair-value range across methods, not a single model estimate.

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Margin of safety filter

Only stocks where the model's consensus fair value is above current price pass the equity filter. The downside-first mindset that wheel strategy demands.

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Real options income metrics

Probability of profit, reward-to-risk, IV rank, and earnings buffer — sourced from live options chains, not theoretical BSM assumptions alone.

Live wheel candidates — today's top results

Model estimates based on nightly data. Not investment advice.

TickerPriceSectorStrategyEquity ScoreMoS %Prob. Profit
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How the Wheel Screener ranks candidates

Step 01

Equity quality filter

19+ valuation methods compute a consensus fair-value range. Only stocks with a positive margin of safety and non-null Equity Rank Score qualify.

Step 02

Options liquidity filter

Minimum open interest of 500 contracts. Live chain data preferred; BSM model estimate used when chains are unavailable. Model-estimate rows are flagged.

Step 03

Earnings buffer check

Candidates with earnings due within 7 days are deprioritized — earnings events carry gap risk that option premium rarely compensates.

Step 04

Wheel Score ranking

Composite score: 40% equity quality + 30% probability of profit + 20% reward-to-risk + 10% earnings buffer. Higher = better across all dimensions.

Wheel Score formula

WS = 0.4 × (Equity Rank Score ÷ 100)
     + 0.3 × Prob. of Profit
     + 0.2 × min(Reward/Risk, 5) ÷ 5
     + 0.1 × (1 − Earnings Proximity)

The formula weights equity quality most heavily because the wheel strategy involves potential share ownership. A highly liquid option on a deteriorating business is not a wheel candidate — it is a risk-taking exercise. All components are model estimates; the score is a research ranking tool, not investment advice.

Why valuation-first changes the screen

FeatureEquity RankPure options screeners
Valuation filter (19+ methods)✓✗
Margin of safety score✓✗
Earnings quality (SAVE score)✓✗
Real options chain data✓✓
Prob. of profit / delta filter✓✓
Open interest filter✓✓
Composite equity + options rank✓✗

Frequently asked questions

What is the wheel strategy?+
The wheel strategy is a systematic options income approach with three stages: sell a cash-secured put (CSP) below the current price; if assigned, own the shares and sell covered calls above your cost basis; if called away, restart. The goal is to collect premium repeatedly on stocks you are willing to own. Because you may end up holding shares, the quality and valuation of the underlying matters significantly.
Why filter by valuation before screening options?+
Most options wheel screeners scan contracts for yield, delta, or open interest — ignoring whether the underlying is attractively valued. Equity Rank applies 19+ valuation methods (DCF, Graham Number, EPV, P/E, EV/EBITDA, PEG, DDM, and more) plus the SAVE quality score before surfacing wheel candidates. A higher equity rank score corresponds to a larger positive margin of safety in the model — meaning the screener starts from businesses the model considers attractively valued, not just liquid options tickers. Both are research inputs; neither is investment advice.
What is the Wheel Score?+
Wheel Score is a composite ranking (0–100) that weights four factors: equity quality (40%), probability of profit on the near-term option (30%), reward-to-risk ratio (20%), and earnings buffer — how far away the next earnings report is (10%). A higher Wheel Score corresponds to a candidate that scores well across all four dimensions. It is a research ranking tool, not a recommendation.
What is probability of profit?+
Probability of profit (PoP) is a model estimate of the chance the position is profitable at expiration. That is not the same as the chance the option expires worthless, and the model does not use delta. It computes the structure's breakeven — for a cash-secured put, the strike of the put being sold minus the premium received, which for an out-of-the-money put sits below the current price — and then the probability the stock finishes on the profitable side of it, so the band where the option finishes in the money by less than the premium received still counts as profit. The distribution is a zero-drift curve with a fatter left tail than a lognormal, calibrated on long-run SPY returns, because a lognormal under-prices the crash tail and overstates PoP for downside-exposed positions. PoP is computed for the specific contract each row is priced from — its own strike and its own expiration — so two rows carrying the same strategy label, or the same ticker on two different nightly builds, can show materially different PoP because they hold different contracts. It is a model output under current implied-volatility assumptions, not a guarantee.
How often is the data updated?+
The screener refreshes nightly after market close. Options data is fetched from live market chains where available. Equity valuation data updates when new fundamental data is available (quarterly for earnings-based methods). The preview on this page reflects the most recent nightly build.

Screen for undervalued wheel candidates

Wheel Score, full options metrics, earnings buffer, and 3,000+ stocks scored daily — all inside the Equity Rank screener.

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Educational Use Only — Not Financial Advice

All content, analysis, valuations, options strategies, AI-generated commentary, screener results, and other information provided by Equity Rank is for informational and educational purposes only. Nothing on this platform constitutes financial advice, investment advice, trading advice, or any other type of advice. Equity Rank is not a registered investment adviser, broker-dealer, or financial planner under any applicable law or regulation.

Valuation models, margin of safety percentages, fair value estimates, options strategy outputs, and AI analysis are algorithmic outputs based on publicly available data and do not represent personalized investment recommendations. All financial models contain assumptions that may be incorrect. Past performance of any security is not indicative of future results. You may lose money on any investment.

Every fair value figure on Equity Rank is our model’s opinion of a company’s intrinsic worth under stated assumptions — it is not a prediction, forecast, or price target for where the security will actually trade. Fair value estimates describe what the model considers a business to be worth today, not where its market price is headed. Actual market prices are set by supply and demand and by factors no model can fully capture, and may differ materially and indefinitely from any fair value shown here.

Always conduct your own independent due diligence. Consult a licensed financial advisor, tax professional, or attorney before making any investment or financial decision. By using Equity Rank, you acknowledge that you understand and accept these limitations. Portfolio model outputs are mathematical results of quantitative algorithms and do not represent investment recommendations.