About Our Option Pricing Tool:

We leverage state-of-the-art deep-learning technology to model historical option prices and predict shifts in market momentum for option strategies and recommend fair value prices:

For any given strategy or combination of options, our tool shows recent history of the price as well as the predicted price range for the next 10-day price range (illustrated by gray lines in the upper figure). The figure also includes short- and long-term momentum indicators (represented by green and red lines, respectively). The movements between price, short- and long-term indicators determine whether market momentum favors the option strategy or not.

In the lower figure, the recent history of option strategy price rating is presented with respect to the relative fair level. This plot also present "extreme" levels for which opening and closing a strategy against market momentum may become appropriate.  

The "expected" values for the near-future predicted price and the indicators are shown by dotted lines. (An expected value is the weighted average of a probabilistic distribution for the prediction at any future day). The option-pricing tool also recommends the current relative fair value for the strategy.

The expected values for the price and indicators are used in forming the decision to open or close an option strategy based on the near future prediction and the current relative fair value price. This is summarized in the text message (located above the plots) within our option pricing tool - ultimately using AI - that offers actionable trading advice.