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)
