RSI Oversold/Overbought Presets: Time the Wheel With Momentum

What these presets do

These two presets pair RSI with the right side of the wheel:

• RSI Oversold Put — RSI < ~35 on the underlying. Sell puts on stocks that have pulled back hard.
• RSI Overbought Call — RSI > ~65 on the underlying. Sell calls on stocks that have rallied hard.

Both bundle:

• Sensible delta band
• Liquid contracts only
• Standard wheel DTE
• Liquidity Cleanup on

When to use them

RSI Oversold (puts):

• Broad market dips.
• A specific name you've been waiting to buy at a discount.
• After a sector rotation away from a name you like.

RSI Overbought (calls):

• A stock you own has rallied 10%+ in a week.
• You want to take profit and collect premium.
• The market is exuberant and pullbacks feel imminent.

A worked example — buy the dip with options

A name you like just dropped 8% on macro news:

1. Open the Put screener.
2. Apply RSI Oversold Put preset.
3. Filter by ticker.
4. Pick a strike below the day's low.
5. Sell the put — you're paid to wait for the bounce.

If the stock recovers, the put expires and you keep premium. If it keeps dropping, you buy at your chosen discount.

Common mistakes

1. RSI traps in real downtrends. A stock can stay oversold for weeks during a real bear move. Confirm with fundamentals before committing capital.

2. Ignoring earnings. RSI extremes are often news-driven. Pair these presets with Exclude Earnings to be safe.

Where to go next

• Read RSI filter.
• Add Stock vs DMA filter for trend confirmation.
• Compare with High IV preset.