Opportunities in AI for Options Traders

Tom Gentile

Posted in
Education

By: Tom Gentile
June 23rd, 2023

4 mins read

Do you hear that? It’s the new buzzword in every financial news story, every earnings announcement. I’m talking about AI. Artificial Intelligence. But with all the talk, what are the best stocks in this space to invest in, and more importantly, how? 

Investing in AI – Building Your AI Powered Stock List

This is Part 1 of a Two Part Session on AI investing. Today we are going to discuss how to build a stock list using AI stocks, and it starts out quite simple.  I’m going to ask Chat GPT to build one for me…  

screenshot of ChatGPT

It responded to me with 19 companies involved in one way or another with AI. 

Alphabet Inc. (GOOGL)

Microsoft Corporation (MSFT)

NVIDIA Corporation (NVDA)

IBM (IBM)

Amazon.com, Inc. (AMZN)

Baidu, Inc. (BIDU)

Tencent Holdings Limited (TCEHY)

Intel Corporation (INTC)

Salesforce.com, Inc. (CRM)

Alibaba Group Holding Limited (BABA)

Qualcomm Incorporated (QCOM)

Apple Inc. (AAPL)

Facebook, Inc. (FB)

Sony Corporation (SNE)

Cognizant Technology Solutions Corporation (CTSH)

Twilio Inc. (TWLO)

Palantir Technologies Inc. (PLTR)

Splunk Inc. (SPLK)

Nuance Communications, Inc. (NUAN)

Ok so let’s take what ChatGPT has given us and dig a bit deeper. First I am going to add these to alist to keep track of, but I need more…  

I need to know about market cap, so let’s look into this site – www.companiesbymarketcap.com

screenshot of www.companiesbymarketcap.com

Immediately, this website gives us a list of all companies by market cap, but if you just want the AI companies, click in category at the top and click on AI. The result is 30 companies. It’s possible that 19 of these are the same as ChatGPT but there are 11 more that I didn’t get. I want to add this to my list as well.

I also said I wanted to find out which of these were optionable. Well, here’s the answer. From the ChatGPT list I got 12 optionable stocks out of 19.  From Companies with Market Cap, I got 23 optionable stocks out of 30. Total = 35 optionable stocks.

Below is an updated list of optionable AI stocks in Alphabetical Order:

AAPL    Apple

AI      C3.ai Inc

AMZN    Amazon.com

AUR     Aurora 

BABA    Alibaba 

BBAI    Bigbear Ai Inc

BIDU    Baidu

BY      Byline Bancorp Inc

CRM     Salesforce.com

CRNC    Cerence Inc

CTSH    Cognizant Tech Solution

DT      Dynatrace Inc

EMBK    Embark Technology Inc

EXAI    Exscientia 

GOOGL   Alphabet Inc.

IBM     International Business Machine

INOD    Innodata

INTC    Intel

LTRN    Lantern Pharma 

MBLY    Mobileye

MSFT    Microsoft

NVDA    Nvidia

ON      On Semiconductor

PATH    Nupathe

PLTR    Palantir 

PRO     Pros Holdings

QCOM    Qualcomm

S       Sentinelone

SONY    Sony Corp

SPLK    Splunk Inc

STEM    Stem Inc

TSLA    Tesla 

TSP     Tusimple 

TWLO    Twilio Inc

UPST    Upstart 

I’m not done yet.

Some of these companies I have never heard of, so I want to run this one more time for price movement. If the latest Bull move in the stock market is in AI stocks, then I want the companies that are pushing the markets higher. I am now going to take my AI stock list, and rank it YTD (Year-to-Date), to see what stocks in this list are in the top 10 percent of their 2023 range.

Screenshot of ranked stocks

And here we are. My list has nearly been cut in half. 16 optionable stocks that have largely been the reason the stock market is higher in the last quarter. From 0-100, these stocks are trading in the 90+ stock range for this year. The top 5 are hitting new highs for the year as we speak. 

This list will be a moving target, as some of these may drop off over time as others may come on. But looking at the surface, there are a lot of well-known names on this list. Your take away isn’t the names, it’s the involvement of AI that they are in today. 

Next week I will discuss Investing Strategies in this group…  till then! 

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


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