Well today’s the day for the outcome of the first AI recommended trades. The backstory is here and it achieved the desired results but to recap:
For January, I bought 100 shares of IWM at $247.05 then
- Sell 1 January 30 $250 call for $3.73
- Buy 1 January 30 $247 put for $4.51
This trade should yield either a gain of 1.39% or a loss of 0.01% (couldn’t get it to zero because of slippage)
For February, I bought 100 shares of IWM at $246.57 then
- Sell 1 February 20 $249 call for $5.94
- Buy 1 February 20 $247 put for $6.18
This trade should yield a gain of 1% and no loss or gain.
IWM closed around $259.65 so I will likely be assigned at $250 for January. Not sure what will happen in February but likely be assigned at $249. The trade was profitable and annualized it’s about 16% if I can repeat the process each month.
AI has given me more trades that I have executed and I’ll write about those in the future but so far, AI is making very good trades. The most important thing here, ironically after today’s market moves, is to keep from losing money. At this point in my life, I need to keep as much of my money as possible so that’s the priority, scoring a theoretical 16% return for the year isn’t bad considering the risk of loss was close to zero.
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Is AI help you trade yet? Try this, take a picture of your latest trade and ask AI to give you a traders critique.