How Do You Use AI In Trading Options?

AI can help in stocks trading. It is a useful tool for building your portfolio around a specific strategy. 

In this article, you will find out how do you use AI in trading options? We will look at the "sales" talk of some companies to learn how artificial intelligence is changing the world of trading options.

Use of AI in Trading Options

Artificial intelligence has shaken the world, and it has an extraordinary impact on the financial atmosphere as well. Different businesses are using AI to transform the financial sector. Many stock market companies and investors are using AI for stock market predictions.

An Israeli company with the name “I Know First” is among the leaders of AI into the stock market. This company has trained deep learning AI along with genetic programming. The artificial neural network was used by the company to collect current market data. They also used the model to identify what will happen next? In this way, the company used to determine the best investment opportunities. 

The company has also used genetic programming to be aware of the performance and to re-calibrate models whenever they see them underperforming. They use genetic programming to increase the accuracy of predictions. The company ensures that AI is always geared up to meet new conditions. They make sure that AI can be used to simulate various scenarios. Moreover, AI can provide predictions for over 10,000 financial instruments, including ETFs, stocks, commodities, currencies, and cryptocurrencies. 

AI delivers a forecast in the form of two numeric indicators, such as predictability and signal. Signal tells about the performance of each asset on the forecast that is measured against other financial instruments. On the other hand, the second indicator predictability shows how well the algorithm is working so far in predicting the stock. The time horizon that covers the forecast ranges from 3 to 365 days. It covers short-term, mid-term, and long-term outlooks. 

AI and Options Trading - IKnowFirst

When we talk about options contracts, you can see how well predictive AI and derivatives work together. In options trading, you want to make a profit, and everything is in the form of a picture in your mind about what will happen next with the securities. A seasoned trader spends time on research and observes what could be the future value of the asset. After knowing all the factors, then he trades options. Here the forecast of AI becomes handy when it joins hands with technical and fundamental analysis. Artificial intelligence will complement with the brilliance and skills or trader. 

The scope of AI in trading options is overwhelming. The company is helping options traders to identify those stocks that have the massive potential of growth. Moreover, the company is ensuring that AI works well for both short-term and long-term trades. It is also helping them to find the difference between the strike price and market price so that they can gain profit. Directional strategies that predict uptrend or downtrend are likely to get the benefit of AI predictions. 

AI is helping in predictions on options as well, along with stocks. In the recent evaluation, it was seen that it provides exceptional accuracy rate. Those investors who are new to trading can take the help of this company for future predictions of the option’s value? 

Best Artificial Intelligence Stock Trading Software

We have talked about AI in options trading. Now, we will discuss AI software for stock trading. Artificial intelligence is playing a vital role in our day-to-day lives. Nowadays, AI-powered solutions are everywhere.

AI has established a remarkable success in stock trading. Financial markets are tough to predict. But thanks to these AI trading software that has brought trading to a new level and makes it easy for the traders to make predictions. So, let’s have a look at the four best trading software platforms. 

  • Trade-Ideas
  • It is powered by AI and it is useful software for stock trading. It serves as a stock scanner and Robo-advisor. Trade ideas include a variety of algorithms that help traders to find a profitable trading scenario overnight. Thus, it prepares investors to apply strategies to gain more profits.

    It has an algorithm named “HOLLY” that analyzes the previous market sessions when the market is closed.  Its algorithm takes short-term and long-term positions into account. It also indicates fundamental, social, and technical indicators. This software heavily relies on research and analysis. You can get more info about trade ideas from their blog. 

  • TrendSpider 
  • This software is also very popular among day traders and technical analysts. It automates the analysis part with the help of smart charts and simplifies the trading process. Its smart chart part is because of AI. It offers various features and functionalities, such as automatic trend line detection, automated pattern, manual tuning mode, and drawing meaningful trend lines. In simple words, this AI-powered software leads you towards the most powerful trading opportunity where you can make massive profits. Nowadays, this software is known as the most comprehensive and powerful stock trading software. 

  • Blackboxstocks
  • It was started in 2014, and since then, it didn’t look back. It offers a screener solution powered by AI that filters the noise out of the market. Their algorithms offer real-time trading alerts. Now, they have added extensive options to market scans. Usually, it will cost you $99 per month, but you can make use of promo code to get 20% discounts. 

  • EquBot
  • It is powerful AI software for stock trading. It is a powerful tool for exchange traded-funds. It offers a multi-staged technology process for analysis. It is good for long-term traders and less suitable for speculative traders. 


    Artificial intelligence has revolutionized the world. It has played an exceptionally good role in trading options as well. Stock trading with the influence of AI has enabled investors to earn significant profits. It has made price predictions much easier than the past. So, AI has proven to be an excellent addition to options trading. 

    Sky Hoon. Read Full Bio
    Website Owner, Twitter-er
    He has been trading since 2008. He started this blog to share the journey about option trading. He dabbled in stocks, bitcoin, ethereum (in Celsius Network), ETF (lazy Dollar Cost Averaging) and also built websites for fun. He used this as a platform to share my experiences and mistakes in trading, especially options which I just picked up.