Optimize Advisors proprietary Options AI “Smart Sentiment” technology aims to achieve high precision and to reduce prediction errors. This is because it is based on 10 years of options analytics research and has been developed using a technology platform that is at the forefront of Options Artificial Intelligence.
OAIE primarily invests in common stocks with attractive upcoming event opportunities, normally 10 to 30 Large Cap* constituents with Weekly Options*.
Smart Sentiment Metrics use the prices of the weekly and other options available on a security to assess the overall market's expectations for the possible price movements of the underlying security. These metrics offer us insights into market participants' detailed risk and reward expectations by capturing the views of “silent” investors, both institutional and retail.
We extract Smart Sentiment Metrics for stocks with upcoming events (primarily earnings calls). These Smart Sentiment stock buying opportunities are ranked by risk/reward and we then buy the most attractive stocks.
A secondary goal of the strategy is to add broad-based equity index and sector ETF positions to reduce concentration risk, maintain a sufficient level of exposure between earnings seasons, and opportunistically trade ETF market and sector events.