Buying Oversold + AI

This is a discussion of the "Buying Oversold + AI ⚡" strategy.

Overview

• Long Call Diagonal
• 2 legs
• Used with Only tickers in: QQQ, XLV

Buying Oversold + AI ⚡ Strategy Settings

Buying Oversold + AI ⚡ Open Conditions:

• RSI 14 Days Below 30
• 6 month asymmetry of up vs down stock returns Below 0
• In the last year, the kurtosis (tailedness) of the stock returns has been Above -1

Details on Options TradeMachine is Selecting for Buying Oversold + AI ⚡ Strategy:

• 1x long 50 delta call near 60 days to expiration
• 1x short 20 delta call near 30 days to expiration

Earnings Handling for Buying Oversold + AI ⚡ Strategy:

• Never Trade Earnings

Buying Oversold + AI ⚡ Close Conditions:

• Options reach expiration (Close all legs with front month options)

Open next trade for Buying Oversold + AI ⚡:

• At Normal Time

Video Transcript