Explore All Your Options With Predictive Alpha!

By Mike Burnick

In last Tuesday’s issue of Inside TradeSmith, , I walkedyou through our powerful, AI-driven Predictive Alpha system, and we explored how the system can find stocks primed for short-term gains – and built a simple screener to start searching for these could-be winners ourselves.

Just to recap, Predictive Alpha crunches the key data for more than 4,000 securities (mostly stocks, plus a few dozen major ETFs). And in a split second, TradeSmith’s AI-powered system ranks each of those securities based on two key metrics:

  • The direction the security’s price is expected to move in over the next 21 trading days…
  • And the percentage change in price expected for that security, down to the second decimal!

With these insights at hand, using Predictive Alpha can give you an impressive edge in your trading or investing: At a glance, you’ll know what direction your stock is projected to move in over the next month. And you’ll also know how far it’s likely to move, right down to the penny.

Last week, we used Predictive Alpha to scope out new stock and ETF trades. But, naturally, powerful insights like Predictive Alpha’s can also prove invaluable when it comes to trading options.

That’s why TradeSmith introduced Predictive Alpha Options – our AI-powered options trading tool.

Predictive Alpha Options takes the same stock price projections from our Predictive Alpha algorithms, then identifies the best possible options trade strategies. It allows you to use the same quality data you’re used to… for even bigger potential profits!

The leveraged profit potential options can provide is a big advantage on its own, but for my money, it’s the flexibility that options provide that makes them such an important tool for any investor or trader. 

For example, when you see a bullish trading opportunity in the market, you can take advantage of it by buying the stock outright, or by buying a call option on it.

However, you could also consider opening a “buy write” trade, in which you buy 100 shares of the stock and sell a covered-call option on the stock at the same time – to bring in earnings right as you enter the trade. No waiting – or selling – required!

And speaking of income-generating options strategies, you could also consider selling a put option or a put option spread on the stock, to earn more income.

The possibilities are truly endless. But at times, having so many choices can be overwhelming.

And that’s where Predictive Alpha Options is worth its weight in gold.

Let me show you in detail…

Optimal Options, Directly from Your Dashboard

You can use our data to narrow down your options and point you to the “optimal” strategy best suited to today’s market conditions.
 
If you’re subscribed to Predictive Alpha Options, Predictive Alpha All Access, The AI Super Portfolio,  TradeSmith Essentials, or TradeSmith Platinum, you can access this valuable data simply by logging into your TradeSmith Finance Dashboard.

(And if you don’t have access to these tools — and would like to — stay tuned for more details.)

Once you’ve logged in to your account, scroll down your Dashboard until you reach the Predictive Alpha widget shown below.

Here, you can also access optimal trading strategies for any stock you search. Plus, by selecting the appropriate tabs, you can also view curated lists of the current Top Bullish and Top Bearish stocks according to our Predictive Alpha algorithm!

Select the Options tab in the widget menu, and you can use the search by ticker symbol bar at the top left of the window to find Predictive Alpha Options data for any stock.

Simply type in a stock ticker to get started – like Nvidia (NVDA), shown as an example below:

There’s plenty of useful data included here, so let’s unpack it all…

You can click on the Stock tab above to switch your view and review Predictive Alpha’s insights on NVDA itself, as I covered in detail last week.

From the Options tab, we can view the Predictive Alpha Options insights and strategies for NVDA instead:

Let’s take a deeper dive by explaining each numbered section one by one.

  1. Trend Zone: For each stock, Predictive Alpha calculates a unique Trend Score. This combines short-, medium-, and long-term price trends to determine if a stock is in a Bullish, Bearish or Neutral Trend.
  2. Future Projection: The “core” of Predictive Alpha’s data, this is the AI-driven price projection based on each stock’s unique historical patterns and stock market trends.
  3. Correlated: A blue check mark here tells you if the stocks’ Trend and Price Projections are in sync, pointing in the same direction. If there’s no check mark, they’re out of sync.
  4. Volatility: Our unique VolScore tells you if options prices are cheap or expensive at the moment, compared to recent history. This score determines which option strategy is recommended.
  5. Strategies: Optimal trading strategies are calculated for each stock based on a combination of Trend (Bullish Bearish, Neutral) and VolScore, to help you make more informed decisions by helping guide you to the right option strategy.

The VolScore determined by Predictive Alpha Options is directly related to what option trading strategy is considered ideal at the moment. For more details, see the chart below:

So, with all that in mind, here are the current stats for NVDA:

  • NVDA’s Trend Zone is Bullish…
  • NVDA’s Prime Projection Date is 12/02/2025, with a Projected Target Price of $196.13 (+3.13%)…
  • NVDA’s projections are Correlated – meaning both Trend and Projection are in sync…
  • And NVDA’s high VolScore of 69 indicates that you should primarily consider selling puts or opening a buy/write covered call trade on NVDA. Alternatively, you could consider buying calls.

Don’t worry if that’s a lot to consider at once: The Predictive Alpha Options widget displays a handy data summary on the right, that compiles all these key insights in one convenient place:

Mike Burnick’s Bottom Line: When you uncover a stock that you’d like to trade or invest in, before pulling the trigger, you should consult Predictive Alpha Options.

Our AI-powered tool can help you boost your trade’s odds of success, by letting you quickly and easily zero in on alternative option trading strategies that you may want consider. Whether you’re aiming for bigger profit potential with less risk, or just to earn recurring income, Predictive Alpha can do it all!

Good investing,

Mike Burnick
Senior Analyst, TradeSmith

P.S. Over my last two issues of Inside TradeSmith, we’ve covered the benefits of our cutting-edge Predictive Alpha system. The AI-powered algorithms at the heart of our system give you real-time price projections for thousands of individual stocks, funds, and ETFs, projecting as far as 21 days from now.

As the system looks forward, Predictive Alpha can provide you with precise price forecasts – telling you right down to the penny where it expects a given asset will move. Last week, we saw how those forecasts can provide high-quality stock trades in the short term… and today, you got a taste of how Predictive Alpha can enhance your options trading, no matter your preferred strategy.

And it’s not hard to find this data, either: With a subscription to the Predictive Alpha tools, you can access these powerful projections right from your TradeSmith Finance Dashboard – as easily as you’d use any search engine.

Our research and development team has been hard at work this year, upgrading the Predictive Alpha system to be better than it’s ever been – and with the market entering its volatile end-of-year period, there’s no better time to get started with the system.

Click here to find out more about Predictive Alpha Options – and how you can put our AI to work.