I started using a DCF calculator to filter which underlying assets I sell puts on and my win rate improved a lot, fundamental analysis is the way
u/xCosmos69 ·
Reddit — r/thetagang
· March 07, 2026 at 13:02
· ⬆ 23 pts
· 💬 29 comments
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I know most people here pick underlyings based on iv rank, premium levels and maybe some basic chart patterns. I started adding a fundamental filter a few months ago and it's made a noticeable difference in how often my short puts end up being assigned on stocks I actually want to own. The idea is pretty straightforward, before I sell a put on anything I check whether the stock is trading at or below a reasonable estimate of fair value. If it is, I'm comfortable with assignment because I'm getting a quality business at a decent price plus the premium I collected. If it's trading way above fair value I either skip it or only do very short duration trades with wider margins. For screening I've been pulling intrinsic value estimates from valuesense and comparing them to current prices to build a watchlist of fundamentally reasonable candidates. Then I layer the usual options criteria on top, iv percentile, bid ask spreads, earnings timing, etc. The combination of selling premium on fundamentally sound companies at reasonable valuations has reduced my losers a lot, when I do get assigned I'm not panicking because I already decided the company was worth owning at that price. Does anyone else here incorporate fundamental analysis into their options strategy or is it mostly technicals and greeks for this sub?