PUTSCAN / CANDIDATE REVIEW
METHOD M1.1 · RUN RSH-0001 · REFERENCE TIME 2026-07-14 09:30 ET
Research only—not investment advice or a recommendation. Reference values are not live or executable quotations. Assumptions: one standard 100-share contract, sale at displayed bid, holding through expiry, modeled collateral = strike × 100, and user-entered fees. Gross break-even excludes fees; scenario P/L includes entered fees.
Selling a put can require purchasing the underlying at the strike. Loss can approach strike × 100 less premium received, plus fees, if the underlying falls to zero. Scenario outputs are arithmetic illustrations—not forecasts.
Choose a preset or inspect the thresholds, then run the embedded queue.
Rules-based sell-put scanner
Filter by liquidity, downside buffer and yield. Inspect every gate, stress assignment economics and compare only the contracts that survive.
Displayed bid is used for premium. Simple annualization excludes idle cash, fees, taxes, slippage, assignment and loss. Scores are deterministic values from the disclosed five-component formula.
Method transparency note M1.1
This document separates source inputs, deterministic calculations, hard eligibility rules, disclosed scoring and human judgement. It describes only the deterministic capabilities present in the public interface.
mid = (bid + ask) ÷ 2
moneyness % = (spot − strike) ÷ spot × 100
premium per share = option bid
premium proceeds = option bid × 100
modeled collateral = strike × 100
maximum gross modeled profit at or above strike = option bid × 100 (fees excluded)
gross modeled loss at spot zero = (strike − option bid) × 100 (fees excluded)
gross break-even = strike − option bid
gross break-even buffer % = (spot − gross break-even) ÷ spot × 100
quoted spread % = (ask − bid) ÷ ((bid + ask) ÷ 2) × 100
simple annualized gross-collateral yield % = option bid ÷ strike × 365 ÷ DTE × 100
buffer points = 30 × clamp(gross BE buffer % ÷ 15, 0, 1)
yield points = 25 × clamp(annualized yield % ÷ 15, 0, 1)
liquidity points = 20 × clamp(log10(open interest + 1) ÷ 4, 0, 1)
spread points = 15 × clamp(1 − quoted spread % ÷ 15, 0, 1)
delta-fit points = 10 × clamp(1 − |absolute delta − 0.22| ÷ 0.18, 0, 1)
deterministic score = round(buffer + yield + liquidity + spread + delta-fit points)
expiry P/L = premium proceeds − max(strike − scenario underlying price, 0) × 100 − fees
return on modeled collateral % = expiry P/L ÷ modeled collateral × 100
fee-adjusted break-even = gross break-even + fees ÷ 100
Precision and units: bid, ask, spot and strike are reference values in US dollars per share; fees are user-entered dollars per contract; one standard contract is fixed at 100 shares. Calculations use canonical numeric source values and round only when rendered. Adjusted or non-standard contracts are outside scope. Gross break-even excludes fees; fee-adjusted break-even and scenario P/L include the entered fee assumption.
Preset thresholds: Conservative = score 82, DTE 35–55, absolute delta 0.15–0.25, OI 1,000, spread 6%, buffer 10%, yield 8%, events excluded. Balanced = 70, 30–60, 0.15–0.30, 500, 8%, 8%, 8%, events excluded. Income = 72, 25–50, 0.20–0.35, 750, 9%, 6%, 10%, events excluded. Manual edits set the state to Custom.
- Validate filter ranges and source-field availability.
- Calculate derived metrics from the unchanged source record.
- Apply every active hard gate. Any failure excludes the record.
- Rank only the surviving records.
- Expose threshold evidence, downside arithmetic and failure conditions.
- Require human judgement. No interface state authorizes action.
| Component | Current public build | Permitted AI role | Prohibited role |
|---|---|---|---|
| Input validation | Deterministic range checks | None required | Inventing or repairing source facts silently |
| Derived metrics | Deterministic formulas | Explain a formula in plain language | Changing values or calculation rules |
| Eligibility | Eight explicit hard gates | Explain why a record failed | Waiving or overriding a gate |
| Ranking | Deterministic score and selected-field sorting | In a governed design, order eligible records using versioned features | Presenting rank as probability, forecast or instruction |
| Candidate explanation | Template text from visible evidence | Draft a concise evidence summary for human review | Fabricating rationale or hiding contradictory evidence |
| Scenario analysis | Deterministic expiry arithmetic | Describe sensitivity and limitations | Calling arithmetic a forecast or expected return |
| Suitability and execution | Not implemented | None | Assessing suitability, placing orders or authorizing action |
- Eight hand-authored reference contract records are embedded in this file; the status bar reports that same loaded-record count.
- No market, broker, portfolio, user-account or analytics API is called.
- Derived values are recomputed when controls change; scenario assumptions do not overwrite source facts.
- Session storage retains only temporary workspace and guide state. No cookies or persistent browser storage are used.
- Print output carries method, run, data-status and risk assumptions.
The scanner creates a review queue, not an action queue. A human must independently judge valuation, willingness to own the underlying at the strike, available cash, concentration, correlation, event exposure, taxes, fees and execution conditions. The interface has no broker connection and no order path.
Architecture
The current build is deterministic and uses no AI or external inference service.
EMBEDDED REFERENCE RECORDS
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RANGE VALIDATION -- may reject scan
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DERIVED METRICS + SCORE -- disclosed formulas
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DETERMINISTIC GATES -- may reject contract
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SELECTED-FIELD SORT -- orders survivors
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REVIEW QUEUE
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HUMAN DECISION
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NO ORDER EXECUTION
Build: 2026-07-16. Method: M1.1. Data: eight hand-authored reference records. AI: inactive; no model or inference call. Storage: session-only browser state. Network: no external APIs, trackers or broker services.
Risk and limitations
- Underlying drawdown or overnight gap.
- Earnings, guidance, litigation, corporate-action or macro shock.
- Volatility expansion, liquidity deterioration or execution slippage.
- Data error, stale chain or feature leakage.
- Concentration, correlation and repeated assignment.
- Owning the underlying above defensible value.
- No live data, brokerage connection or execution.
- No live AI or external inference service in this public build.
- No suitability assessment, personalized advice or recommendation.
- No promised return or probability of profit.
- Break-even does not protect against early assignment or mark-to-market loss.
- Simple annualization is not CAGR, APY, expected return or realized return.
- Scenario outputs are arithmetic illustrations, not forecasts.