Screener Metrics Glossary

This glossary covers every metric you'll encounter in the HV Options Screener. Each definition explains what the metric measures and how to interpret it for your trading decisions.

Option Contract Metrics

Delta

The probability (roughly) that the option expires in-the-money. A delta of 0.20 means approximately a 20% chance the option will be exercised.

For premium sellers: Lower delta = higher probability of profit. A 0.15 delta put has about an 85% chance of expiring worthless (which is what you want when you sell it).

DTE (Days to Expiration)

How many calendar days until the option contract expires. The screener filters for 7–55 DTE by default.

Sweet spot: 20–45 days. Time decay (theta) accelerates inside 45 DTE, which benefits premium sellers. Below 7 days, the premium may not justify the margin.

Strike Price

The price at which the option gives the holder the right to buy (call) or sell (put) the stock. When selling puts, your strike is the price you'd buy the stock at if assigned.

Premium / Price

The market price of the option contract. When you sell an option, this is the premium you collect upfront.

Bid / Ask

The current bid (what buyers will pay) and ask (what sellers want) for the contract. The midpoint between bid and ask is a common estimate of fair value. In Live Mode, these reflect real-time broker quotes.

Volatility Metrics

HV 30d (Historical Volatility, 30-Day)

How much the stock price has fluctuated over the past 30 trading days, expressed as an annualized percentage. Higher HV means larger daily price swings.

Example: An HV 30d of 35% means the stock has been moving about 2.2% per day (35% ÷ √252).

HV Rank

Where the current HV sits relative to the past year's range, on a scale of 0–100.

• HV Rank 80: Current volatility is higher than 80% of the past year's readings
• HV Rank 20: Current volatility is near the low end of the past year's range

For premium sellers: Higher HV rank = richer premiums. Look for HV rank above 50 for good selling opportunities. Above 65 is excellent.

IV (Implied Volatility)

The market's forecast of future volatility, derived from option prices. Higher IV means options are more expensive.

Key insight: When IV is higher than HV, options may be "overpriced" relative to actual stock movement — a favorable condition for sellers.

Vol Expanding

A flag indicating whether volatility is currently trending upward. When true, the stock's recent volatility is increasing — premiums may continue to rise.

Setup Score Components

Setup Score

A composite ranking that combines multiple factors into a single number. Higher is better. The score balances risk and reward so no single metric dominates.

Edge %

Measures how much the theoretical (Black-Scholes) price exceeds the market price, as a percentage of premium.

Formula: (Theoretical Price − Market Midpoint) ÷ Premium × 100

A positive edge suggests the option is priced higher than its theoretical value — favorable for sellers. Think of it as a "margin of safety."

Return %

Maximum profit as a percentage of the margin or collateral required.

For puts: Premium received ÷ (Strike × 100 × Quantity) × 100 For spreads: Premium received ÷ Max risk × 100

Higher return % means better capital efficiency.

Return/Day

Return % divided by DTE. This normalizes returns across different expirations so you can compare a 15-day trade to a 45-day trade on equal footing.

Use it when: You're deciding between two setups with different expirations. The one with higher return/day is more capital-efficient per unit of time.

Theta

The dollar amount the option's value decreases per day due to time decay. When you sell an option, theta works in your favor — the option loses value over time, bringing you closer to your profit.

Example: A theta of -$0.05 means the option loses $5 per contract per day (all else equal).

Win Rate

The historical percentage of trading days where this specific option contract would have expired out-of-the-money (worthless for the buyer, profitable for the seller).

Example: A win rate of 78% means that historically, on 78% of the days in the lookback period, this contract would have been a winner for the seller.

Important: Win rate is backward-looking. Past performance doesn't guarantee future results, but it provides a statistical baseline.

Stock Fundamentals

These appear on the Watchlist and are used for additional context:

Related

• HV Options Screener — Where you'll use these metrics
• Options Strategies Explained — Strategy context for interpreting metrics
• How to Find a Cash-Secured Put — Practical application