When it comes to a toolbox, a good one typically has a hammer, pliers, a tape measure, a multi-bit screwdriver, a socket wrench set, a utility knife, and a cordless drill. When it comes to investments, what tools belong in your investment toolbox?
I continue to build tools for my investment toolbox. My latest tool is a Black Scholes options analysis tool. I worked with AI to build a graphical and tabular view of options on equities I am invested in or interested in being invested in for my portfolio.
I built as yet another tool in managing my options positions. The point of this tool is to find mis-priced options according to the Black Scholes model. Some people, like Warren Buffet, aren’t fans of the Black Scholes but without a better tool or model to use it’s the best thing to go on for now.
AI made quite a few mistakes when I was testing the output and I had to go back and get it to fix various errors. A sample file is down below and it still has a couple of mistakes such as “risk free” showing up on the annualized column on some investments. I asked AI why it did this and it says it is correct.
I will continue to tweak this tool a bit but it’s a great time to review all the tools AI built that I am using on a regular basis now.
- Options Flow – An app that reviews monetary flows for options trades.
- Current Market Valuation – An app that looks at S&P 500 valuation metrics and outputs current valuation.
- Bull Put Credit Spreads – An app that finds optimum options trades for investments I am interested or invested in.
- Optimum Covered Calls – An app that finds optimum covered call trades.
- Put Ratio Finder – An app that finds optimum base put ratio options trades for things I am interested or invested in.
- Options Collar Analysis – An app that finds optimum options collars for things I am interested in or invested in.
All these tools have helped advance and improve my investment strategy and the returns have been great and I’ve minimized losses. All these tools cost me a $20/month subscription to create and well worth the investment.
Share The Wealth
Have you had AI build you a digital toolbox yet?