How Our Option Plays Are Generated
Every trading day, our AI engine scans 570+ tickers and identifies the setups with the strongest signal convergence. Unlike traditional screeners that show you indicators and leave the decision to you, TradeAlerts AI generates complete trade ideas with everything you need: direction, strike, expiration, entry, stop, and target.
The process starts with our ML direction model, which predicts bullish or bearish probability for each ticker. But a model prediction alone is not enough. We require flow confirmation: unusual options activity must align with the model's direction. When both ML and flow agree, conviction is high.
What Each Play Includes
Unified Score (0-100)
The aggregate conviction score based on 7 components. Higher scores mean more signals converging. We typically publish plays scoring 70+.
Strike & Expiration
Specific strike price and expiration date selected for optimal risk/reward. We target 0.30-0.50 delta for directional plays and 2-4 week expirations for swing trades.
Entry Zone
A price range for the option (not just a single price) that accounts for bid-ask spread and intraday fluctuation. Enter within this zone for the intended risk/reward.
Scale-Out Exit Plan
Every play includes a multi-tier exit: stop loss (typically 30-50% of premium), first target (50% gain, sell half), and trailing stop for the remainder. No ambiguity.
Sample Play Ideas
| Score | Ticker | Direction | Strike | Exp | Entry | Stop | Target |
|---|---|---|---|---|---|---|---|
| 87 | NVDA | BULL | $950 C | Apr 18 | $14.20-$15.80 | $8.50 | $24.00 |
| 82 | META | BULL | $620 C | Apr 25 | $11.50-$13.00 | $7.00 | $20.00 |
| 74 | TSLA | BEAR | $175 P | Apr 18 | $6.80-$7.60 | $4.00 | $12.00 |
| 79 | AAPL | BULL | $235 C | Apr 25 | $3.40-$4.10 | $2.00 | $6.50 |
Card-style layout showing each play with unified score gauge, ticker chart thumbnail, flow summary, entry/exit levels, and a signal breakdown showing which of the 7 components are contributing to the score
The Scale-Out Plan: Why It Matters
Most options traders fail not because they pick the wrong direction, but because they do not have an exit plan. They hold winners too long (watching profits evaporate) or let losers run (hoping for a recovery that never comes).
Our scale-out plan is built into every play:
- Stop loss at entry: If the option drops to the stop level, exit the entire position. No exceptions. This typically limits losses to 30-50% of the initial investment.
- First target (sell half): When the option reaches the first profit target (usually 50-75% gain), sell half the position. This locks in profit and makes the remaining position essentially risk-free.
- Trail the rest: Move the stop up to breakeven on the remaining half. Let it run with a trailing stop. If the stock keeps moving, you capture the extended trend. If it reverses, you exit at breakeven on the second half.
Scorekeeper: Tracking Every Result
We do not just publish plays and forget about them. Our Scorekeeper system tracks every published play from entry to exit. It records whether the stop or target was hit, the actual P&L, and the holding period. This creates full transparency and accountability.
You can view the track record at any time to see aggregate win rate, average return, and performance by ticker, direction, and score level. This is how we continuously improve the model: plays that underperform get analyzed to identify what went wrong, and the model adjusts.
Important: Not Financial Advice
All play ideas are generated by an AI model and are provided for informational and educational purposes only. They do not constitute financial advice, investment recommendations, or solicitations to trade. Options trading involves substantial risk of loss. Always do your own research and consult a financial advisor before trading.
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Frequently Asked Questions
Plays are generated when a ticker's unified AI score crosses 70+ and the ML direction model is confirmed by at least 2 other signal sources (options flow, GEX positioning, or technical analysis). The system then selects optimal strike, expiration, and entry zone based on delta, liquidity, and expected move magnitude.
Yes. Our Scorekeeper system tracks every published play from entry signal to exit (stop hit or target reached). We publish transparent results including win rate, average return, and performance breakdowns by ticker, direction, and conviction level.
Win rates vary by conviction level. Plays scoring 80+ historically have higher win rates than those scoring 60-70. We publish detailed performance statistics in our Scorekeeper dashboard. Past performance does not guarantee future results, and all trading involves risk of loss.
No. All play ideas are generated by an AI model and provided for informational and educational purposes only. They do not constitute financial advice, investment recommendations, or solicitations to trade. Options involve substantial risk of loss. Always conduct your own analysis and consider consulting a financial advisor.
New plays are generated daily during market hours as our scanner identifies qualifying setups. On active days with strong signal convergence, you may see 5-10 plays. On quiet days with fewer signals, the system may generate only 1-2 high-conviction ideas. Quality over quantity.