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Built a safety-first AI trader for covered calls and cash-secured puts

https://puthouse.com
1•jansonlau•1h ago

Comments

jansonlau•1h ago
I was a software engineer at Google and TikTok in the Bay Area and built an AI options trader called PutHouse.com and wanted to share how my portfolio earned $6k options income automatically, while the stocks gained $42k from ownership. It repeatedly wins small amounts because it’s safety-first before maximizing returns. It’s also backtested since 2012 with a profitable outcome.

The power of this strategy is it does both options income and stock holding and does not replace stock appreciation because you get to reinvest the profits to buy more stocks and compound returns. This doesn’t do the wheel because it’s best to keep the shares for long-term growth without getting them taken away/assigned. These strategies are simple and well known in the industry called covered calls and cash-secured puts. What I’ve done is use AI to automate checking things like live market data and calculating the best safety-first option contract with a high chance of profit, then placing the trade.

Some of the things it checks are:

Delta

DTE

Bid/ask spread

VIX

VRP

OI

IV

Corporate news, events, and earnings

RSI

Account and position size

Underwater positions

What I’ve seen often is someone pretending to be more technical than they actually are which is misleading because they’re showing videos of moving graphs with no real profitable outcome or they leave out the part where you need to integrate with actual market data and order placement function which their posts do not mention.

I’ve abstracted and automated all of that with a click of a button and you don't need a large account to trade. My average user account size is $50k and some of them start with a $2k account and one stock name. But if you can, having more holdings and cash helps because it diversifies income sources. For example, in my portfolio, income came from using NVDA, TSLA, HOOD, SOFI, and others using the shares and cash in my account. When one stock is skipped for trading, another one is most likely used.

Depending on market conditions I’ve seen options income up to 3% a month which again is an overlay to stock gains while holding them. I already have users and I improve the product every week based on their feedback. Is there anything you would like answers to or are skeptical about? Happy to make it easier for more people to make money.

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