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How I’m Using AI to Supercharge ETF Investment Analysis
My initial steps into data science as an investment analyst.
Over the last few years, I have become engrossed with income ETFs and have really fallen into a role as an investment analyst for various funds that leverage options for income.
And with any job, even if it’s essentially working for myself, I live by continuously improving and always looking to provide the best I can.
After reading and writing so many articles about various covered call funds, I have identified an area that needs significant improvement.
Investment analysts, including me, wrote a lot about how an investment may perform in various cases, but few ever quantified the results.
For example, selling covered calls is a known strategy that will cap your upside in the underlying asset. You sell a call option that generates an instant premium, but if the underlying asset rises above your strike price, you will have to sell at your strike price regardless of the asset’s price.
The SPDR S&P 500 ETF Trust (SPY) is trading at $567 right now. If I sell a call option expiring a month out at $600 and SPY rises above $600 before then, I will have to sell my SPY shares at $600 regardless of the price or cash settle the…
