How AI Flags the Best Covered Call Setups (Before You Even Look)
How AI Flags the Best Covered Call Setups (Before You Even Look)
Imagine logging into your trading platform and being presented with a pre-filtered list of top covered call candidates — before you’ve even clicked a screener. That’s what modern AI-driven options tools are now making possible for Canadian investors.
🤖 How Does AI Know What Works?
At Optrader.ca, our models are trained on years of historical covered call data, including:
- ROO (%) – Return on Option values that historically lead to higher profitability
- ADX trends – Stable or gently rising stocks with low volatility spikes
- News sentiment – FinBERT or VADER models flag positive or risky headlines
- Delta + Earnings – Smart exclusion of high-assignment-risk setups
The result? A ranked list of trades that look like the most successful setups from the past — filtered and scored before you even hit “Run Screener.”
📊 Example: How the Screener Learns
Let’s say over the past 12 months, covered calls with the following profile had the best performance:
- ROO between 2.4%–3.5%
- ADX under 30
- Neutral to bullish sentiment
- No earnings within 3 weeks of expiry
AI will boost setups that match this pattern and downgrade those with similar risk but poor historical outcomes.
🛡️ Why This Helps Covered Call Traders
- Eliminates emotional bias – No more chasing “hot tickers” blindly
- Faster decisions – Pre-ranked ideas save hours of research
- Safer entries – Models factor in sentiment & volatility patterns
🔍 Optrader’s AI Screener in Action
When you log in to Optrader.ca, our backend has already scored each covered call candidate using machine learning. All you have to do is sort by:
- Scouter Score
- Sentiment rating
- Predictive model confidence (Bayesian / Random Forest)
