05Understanding scores & grades
OptyTrades uses two complementary scoring systems. Think of them as answering two different questions:
Wheel Score (0–100%)
“Is this a good stock for the wheel strategy?”
This is the percentage shown in the screener table. It evaluates three weighted pillars: Fundamentals (45%) — market cap, dividends, earnings quality, analyst consensus, 52-week position; Options Quality (35%) — implied volatility scaled by a volume multiplier; and Tradeability (20%) — trading volume, price range, and beta.
Before the final score is calculated, five quality gates cap the maximum score to prevent fundamentally flawed stocks from ranking beside quality names:
- Low Liquidity (<1M daily volume) → capped at 35
- No Options Data (IV checked, nothing found) → capped at 35
- Weak Fundamentals (pillar <40%) → capped at 40
- Weak Options (pillar <30%) → capped at 50
- Options Unverified (IV not yet checked) → capped at 60
| Score | Rating | What it means |
|---|---|---|
| 70+ | Excellent | Strong wheel candidate. Good liquidity, reasonable price, solid fundamentals. Start here. |
| 50–69 | Good | Solid candidate with one or two weaker areas. Worth investigating — check the detail view. |
| <50 | Weak | Missing key factors. Usually low volume, extreme price, or poor fundamentals. Proceed with caution. |
Options Grade (A+ through F)
“Is right now a good time to trade options on this stock?”
This letter grade appears in the stock detail view. It evaluates current market conditions: implied volatility, options liquidity, bid-ask spreads, financial health, bankruptcy risk, Piotroski F-Score, analyst consensus, earnings trajectory, dividend safety, and institutional ownership. It tells you how favorable the options market is right now.
| Grade | What it means |
|---|---|
| A+ / A / A- | Excellent conditions — high IV, deep liquidity, tight spreads, strong balance sheet. Great time to sell options. |
| B+ / B / B- | Good conditions — most factors are favorable. Minor gaps but generally fine to trade. |
| C+ / C / C- | Average — acceptable but not ideal. Consider waiting for better conditions or accept lower premium income. |
| D+ / D / D- | Below average — weak options market or financial concerns. Be very selective. |
| F | Poor — illiquid options, wide spreads, or serious red flags. Avoid trading options on this stock right now. |
How to use both together
High Score + Good Grade
The ideal setup. The stock is a great wheel candidate AND current conditions are favorable. This is your sweet spot.
High Score + Low Grade
Great stock, but bad timing. Add it to a watchlist and wait for conditions to improve (higher IV, tighter spreads).
Low Score + Good Grade
Tempting premiums on a weak stock. This is a trap — great premiums exist because the stock is risky. Skip it.
Low Score + Low Grade
Nothing good here. Move on.
Safety Badge
In the stock detail view, a Safety Badge appears alongside the Wheel Score and Options Grade. It runs 7 binary pass/fail checks on company health: profitability, valuation sanity, market cap, IV level, free cash flow, share dilution, and solvency.
| Badge | Checks Passed | What it means |
|---|---|---|
| 🟢 Fortress | 7 / 7 | Rock-solid. Safe to hold through assignment. |
| 🔵 Solid | 6 / 7 | One minor gap. Still a strong candidate. |
| 🟡 Caution | 4–5 / 7 | Notable concerns. Investigate before trading. |
| 🔴 Danger | ≤ 3 / 7 | Serious red flags. Think twice before selling puts. |
The individual checks are listed in the Score Breakdown section so you can see exactly what passed and what failed. A stock with a high Wheel Score but a Danger badge is a trap — the premiums look great because the market is pricing in real risk.
Score Breakdown
At the bottom of the detail view, you'll find the Score Breakdown section. This shows every individual factor that went into both scores — with the points earned, the maximum possible, and a bar chart showing the percentage. Look for red bars to quickly spot weak areas.
Click Deep Analysis at the bottom to see a detailed summary of the stock's strengths, concerns, and an overall verdict. For a quicker take, the Verdict synopsis above the breakdown gives you the bottom line in one paragraph.