You’re not going to believe this but I got a condescending lecture by AI on my trading and worse yet, AI was right! The story started with the idea of buying QQQ but I rarely ever go online and execute a “buy” trade. When I enter a position, I prefer to get a discount either by selling cash secured puts, covered calls, or some other combination of options+equity trade. That’s just my style and there is nothing wrong with it. It’s like using a discount “coupon” to buy stuff.
I want to get back into QQQ but I am not paying the ridiculous over priced values we have now so I thought about doing put spreads deep out of the money at true fair value not bloated value. I used the app I recently created for base put ratios and it kept giving me nothing with the QQQ data. I asked Gemini what was wrong and it said there was nothing wrong, it is fine. I looked at the data manually and constructed trades and I knew there were trades possible so I uploaded all the raw data files to Gemini and asked Gemini to construct trades knowing that it should come up with something.
It looked at the data and pointed out that put ratio spreads need an ITM leg and my data didn’t have any which was correct because I stripped the data down to far out of the money options, proving AI was correct, but then it proceeded to construct trades using OTM legs which I had actually done as the manual test. This is where the stern lecture came in saying that I told it to do something that it was impossible (creating trades with non-existent ITM legs data) but it went ahead and helped me out anyway constructing OTM trades then proceeding to tell me that this was far safer and more profitable ways to trade than my original request! Essentially it called me a dunce and told me what I should be doing to profit more and in a safer way!
It produced a beautiful report of highly profitable trades I hadn’t even considered but I think this was something that “Brownfield” firm did in the movie The Big Short buying way OTM contracts on CDOs that were bound to crash. I am now stopping everything else I’m working on to study and model these trades all of which came out by accident and a stern lecture. And no, I won’t be sharing my newly discovered trade mojo with anyone, sorry but you have to build your own AI trading tools 😉
I am blown away! And I know that AI is like a 3 year old toddler and it’s already solving complex situations that this monkey with clashing symbols is trying to figure out. What is AI going to do at 5 years old?
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Have you been lectured by AI yet? Let me know in the comments below.