Hound Dog AI

HoundDog - A Stock Option AI Analyzer App

HoundDog is your AI broker with a built in pipeline data collector and AI options analyzer.

Using the power of openAI GPTs assistant, the HoundDog GPT has been tailored to help guide you to answer questions about near real-time stock options data, the market, company data, historical trend data, volatility data, and more!

Using ChatGPT as a guide to co-authoring a Python script to integrate Yahoo Finance, Marketdata app, Alpha Vantage, FRED, DOLT, and NASDAQ data feeds. Successfully implementing a unique strategy for finding or as we like to say, "sniffing" out the optimal stock option picks for calls and puts that meets the criteria of 28% - 35% annual ROI at a 5%-10% strike price delta.

Selling one put and one call every day resulted in the total net MONTHLY profit of 2.4%.

It’s also important to note that the current strategy HoundDog is focused on is a Medium-term trading algorithm. (A few days to a few weeks window). Meant for traders with a medium-term horizon, such as a few weeks to a few months, where weekly or monthly data is more relevant. These traders might look at trends in the VIX and GEX over several weeks or months to understand the broader market sentiment and potential turning points. In order to conduct this analysis the following data was collected and used for ChatGPT analysis:

To enhance the options trading analysis, several additional data are used in this tool:

  1. Historical Earnings data: Obtained from Yahoo Finance in order to provide a better understanding of price trends and volatility. It can help assess the potential risk and reward.
  2. Company financials: Overview of financial reports pulled from Alpha Vantage of the companies involved offer insights into their financial health, which might affect the price of the underlying stocks.
  3. Macro-economic data: Short-Term historical references will be used for this project to include from the past 1-2 years. This would be most relevant for understanding the current economic environment and its immediate implications for options. Understanding the broader economic climate is also important as it can have a significant impact on stock prices.
  4. Market sentiment indicators: These can include analyst ratings, news sentiment analysis, social media sentiment, etc. sourced and quantified from Alpha Vantage.
  5. Dividend information: If the underlying security pays dividends, this can affect the price of options.
  6. Expected news events: Quarterly Earnings reports are currently included for past x years. (User Inputted Years for analysis. Limited by AI Token Size) (Future Update: will consider longer history data pulls, but AI model is limiting of size for analysis. Additionally, we will look to include product launches, regulatory decisions, and other planned events that can be sourced for this project.)
  7. Interest Rates: Interest rates can have an impact on options prices, particularly for long-dated options. (Risk-Free Interest Rates pulled from Alpha Vantage and used in the calculation of each stocks implied volatility)
  8. Implied Volatility (IV) Rank or Percentile: This metric gives context to current implied volatility, so traders can understand whether it's currently high or low compared to its past.
  9. Historical Volatility (HV) tells you how much the stock price has changed in the past, which can give you an idea of the stock's price range and potential future volatility, along with volatility yearly highs and lows, and change data.
  10. Option Contract details (implied volatility, annualized volatility, strike price margin, current stock price, strike price, last bid price, bid price goal, the greeks, day change, day volume, open interest, ask price)
  11. Earnings Report schedule, EPS and net income changes.
  12. Historical and implied volatility averages
  13. Sentiment and relevance averages
  14. Most Traded options
  15. Daily GEX
  16. Option Data analysis over different time periods.
  17. Next Dividend Data Report