Sector Filter: Diversify Your Wheel Across Industries
Use the Sector filter to focus on (or away from) Technology, Healthcare, Financials, etc. Critical for diversifying a wheel portfolio.
Why sector matters
Selling 5 puts is great until they all turn out to be tech stocks during a tech selloff. The Sector filter is the first line of diversification on a wheel portfolio.
Where to find it
The Sector dropdown lives in the sidebar of both screeners. Available sectors:
- Basic Materials
- Communication Services
- Consumer Cyclical
- Consumer Defensive
- Energy
- Financial Services
- Healthcare
- Industrials
- Real Estate
- Technology
- Utilities
You can either pick one sector or leave the default ("All Sectors") to see everything.
How to use it
Use case 1 — focus a thesis. You think Energy is undervalued. Set Sector = Energy and review the high-IV options.
Use case 2 — fill diversification gaps. You already hold tech-heavy puts. Set Sector = Healthcare to add a non-correlated position.
Use case 3 — avoid a sector. The screener doesn't currently support exclusion lists at sector level, but you can rotate through each other sector to build a diversified shortlist.
A simple recipe — diversified wheel sweep
To build a 5-position diversified put portfolio in one session:
- Open the Put screener.
- Apply your favorite preset (e.g., Earnings Safe).
- Cycle Sector through 5 different sectors, picking the top-rated row from each.
Five trades, five sectors — instant diversification.
Where to go next
- Layer with Industry filter for finer slicing.
- Use Market Cap filter to cap by size within sector.
- Try ETF Only filter for sector-ETF wheels.
Frequently Asked Questions
How many sectors should a diversified wheel cover?
A common rule of thumb is no more than 25–30% of your wheel capital in any one sector. With 4–5 positions, that means at least 4 different sectors.