Smart Sentiment. The options market is an important source of information on market sentiment that may be used to enhance even pure equity strategies. Market participants express their expectations of magnitude and timing of equity price moves when they trade options.
Smart Sentiment is different from Social Sentiment. Smart Sentiment analyzes actual trades that capture the opinions of influential options investors, unlike social sentiment methods that follow unfiltered media commentary. Options market aggregates information from both institutional and retail investors, including “silent” investors who would not post in social media.
The options market influences equity behavior. Because market makers hedge options, options trades can lead to price moves in the equity markets.
Optimize Advisors generates key Smart Sentiment price probability and risk metrics from the underlying options quote data, using its proprietary Options AI platform. These metrics signal options-implied risk or opportunity levels that allow the creation of equity momentum strategies that may have an advantage over lagging momentum indicators.
Who may be interested in Smart Sentiment funds?
- Investors seeking attractive risk-reward who are strategy-agnostic
- Smart Sentiment aims to deliver upside equity exposure that benefits from options market risk analysis
- Investors interested in Momentum strategies
- Smart Sentiment aims to improve on standard Momentum strategies by analyzing a leading* indicator: the options market
- Investors interested in Sentiment strategies
- Smart Sentiment aims to improve on standard Sentiment strategies with options market sentiment instead of social sentiment
- Investors interested in AI-based strategies
- Smart Sentiment utilizes an advanced AI platform that combines AI Search and Optimization with AI Deep Learning