“sticky stock analysis” care to share? LOL
It was complicated, even for me (and I’m a bit of a nerd). I was analyzing Nvidia stock options, looking for leading indicators by examining changes in implied volatility of puts and calls in an otherwise flat market. I wanted to see if shifts in implied volatility might signal whether certain option prices would move up or down within the next 5 to 10 minutes, assuming the stock price stayed stable.
What I found was an interesting inverse correlation: a sudden increase (say 10%) in the implied volatility of slightly out-of-the-money puts seemed to predict a rise in call prices within a few minutes. ChatGPT suggested this correlation was strong enough to make a small profit, as long as the market remained flat and I acted quickly.
The challenge was that the profit margin was minimal. I’d make money on three trades, then lose on the next one. After about 10 trades, I realized that while the pattern was real, it required conditions to be so precise that trading on it all day would be exhausting without yielding substantial profit (percentage-wise).
In the end, it wasn’t a winning strategy, but I learned a ton about what ChatGPT can do when applied to options analysis.