Blue Chip Preset: Finding Steady, Large-Cap Stocks for the Wheel
A walkthrough of the Blue Chip preset — what filters it applies, which stocks it surfaces, and how to refine it for your wheel strategy.
What the Blue Chip preset does
The Blue Chip preset applies:
- Market Cap ≥ $10B
- 5Y Net Profit Margin ≥ 5%
This surfaces established, large-cap companies with a track record of profitability — the classic starting universe for conservative wheel traders.
Who should use it
- Beginners building their first watchlist.
- Traders who prioritise capital preservation over yield.
- Investors already familiar with the brand names (MSFT, JNJ, PEP, etc.) and comfortable with assignment.
How to tighten it
The default preset is broad. Add these filters to raise quality:
| Additional filter | Suggested value | Effect |
|---|---|---|
| Gross Margin min | 30% | Remove margin-thin businesses |
| ROE min | 12% | Keep only efficient capital allocators |
| D/E max | 1.0 | Remove over-leveraged names |
How to loosen it for more results
- Lower Market Cap to $5B for more mid-large cap names.
- Remove the 5Y Net Margin filter if you want to include recent-turnaround stories.
Typical stocks returned
Blue Chip typically surfaces 100–200 names including large-cap technology, healthcare, consumer staples, and industrial companies. Sort by ROE descending to surface the highest-quality operators first.
Using Blue Chip as a starting point
- Click Blue Chip in the preset chips.
- Sort by 5Y EPS % descending to find the Blue Chips with the best earnings momentum.
- Open each symbol to check the options chain — look for a 30-delta monthly put with annualised yield > 12%.
- Save your favourites and return weekly.
Frequently Asked Questions
What's the difference between Blue Chip and Mega Cap presets?
Mega Cap ($50B+) is purely about size — it captures only the largest companies regardless of profitability. Blue Chip adds a profitability screen (5Y Net Margin ≥ 5%), meaning every stock returned has a demonstrated earnings track record.