Entry signals answer the most important question: “Should I open a trade on this stock right now?”

Each stock gets two independent signals — one for selling puts (CSP) and one for selling calls (CC). They analyze technical indicators to determine optimal entry timing.

Signal colors

How CSP & CC signals differ

CSP and CC signals use the same five indicators but read them in opposite directions:

Each indicator contributes a score. The total score determines the signal color and confidence level. A score of −6 or lower gives a Strong Green CSP signal; +6 or higher gives a Strong Green CC signal. Scores near zero produce a yellow (neutral) signal.

Structural trend analysis

In addition to the five core indicators above, each signal is modified by the stock's structural trend. The system analyzes 12 months of price history, identifies swing highs and swing lows, and classifies the stock into one of three regimes:

• 📈 Uptrend— Higher highs and higher lows. Pullbacks are buying opportunities. CSP signals get a boost (+2 to +3 pts). The wheel works best here — if assigned, you own shares in a stock that's trending higher.
• ↔️ Sideways— No clear directional trend; price oscillates in a range. CSPs get a small boost (+1), and CCs get a significant boost (+2) because the stock keeps bouncing between support and resistance — ideal for selling premium on both sides.
• 📉 Downtrend— Lower highs and lower lows. CSP signals get penalized heavily (+3 to +4 pts toward red) because you'd be catching a falling knife. CC signals also get a slight penalty since your shares are declining.

SMA(50) and SMA(200) alignment is used to confirm or override ambiguous swing patterns. You'll see the structural trend badge in the Trend & Support/Resistance card in the stock detail view.

Support & resistance proximity

The system also detects support and resistance zones by clustering nearby swing lows (support) and swing highs (resistance) from the past 12 months. Levels that have been tested multiple times are stronger. Each zone shows its price level and touch count (e.g., “$147.50 · 3x”).

When a stock's current price is within 3% of a zone, the signal score is adjusted:

• Near strong support (3+ touches): CSP gets +3 pts toward green. Buyers have historically stepped in at this level, making a put assignment less likely.
• Near moderate support (2 touches): CSP gets +2 pts.
• Near strong resistance (3+ touches): CC gets +3 pts toward green. The stock has historically turned down at this level, making your covered call more likely to expire worthless.
• Near moderate resistance (2 touches): CC gets +2 pts.

Putting it all together

The ideal CSP entry is an uptrending stock pulling back to a well-tested support level with RSI in the oversold zone. The ideal CC entry is a sideways or uptrending stock rallying into known resistance with RSI in the overbought zone. The reason tags below each signal show you exactly which factors are firing — including trend and S/R readings.

Confidence levels

Reason tags

Below each signal, you'll see colored tags explaining why the signal is what it is — for example, “RSI 34 — oversold” or “-2.1% below 20d SMA”. These aren't just labels; they're the actual technical readings. You can use them to make your own judgment.

Strike recommendations

When a signal is green or yellow, three strike recommendations appear below, one for each risk level. Strikes are selected using Black-Scholes delta targeting within the 30–45 DTE theta decay sweet spot:

Each recommendation shows the specific strike price, expiration date, estimated premium, capital required, and the annualized return on that capital. You can take these numbers directly to your broker.