How I Used AI to Trade Options Flow

The Setup

A user wanted to find stocks where institutional money was quietly positioning before a catalyst. They asked Xynth to scan for unusual options flow combined with recent momentum, then drill into technicals and gamma levels for the best entry.

What the AI Found

1. 1.Xynth scanned 20 tickers with abnormal options flow and recent momentum. CZR came in third by flow premium at $305K, but was the only one with a BULLISH flow direction, +30.6% momentum, and a reasonable IV rank of 39.3.
2. 2.Ran a technical scorecard across the top 8 candidates, scoring each on MA alignment, RSI, MACD, ADX trend strength, Supertrend, volume, and Bollinger Bands. CZR scored 92/100, the highest, with a perfect 25/25 on moving average alignment and 10/10 on Bollinger positioning.
3. 3.Mapped out the $27 Call payoff at expiry to visualize the exact risk/reward. Entry at $1.18 per contract, breakeven at $28.18, with uncapped upside above that level.

The Trade

CZR $27 Call, Mar 20 expiry. Entry: $1.18/contract. Target: $30 (gamma wall). Stop: $25 (gamma support). Risk/Reward: 1.4:1.

The Result

Turns out, the bullish flow we were picking up on was anticipating a $7 billion buyout. On March 11, Caesars jumped 11.8% after news broke that billionaire Tilman Fertitta was in exclusive talks to acquire the company at $34/share. The $27 Calls we entered at $1.18 ran to $4.13, netting a 250% return in 5 days.

The Prompt

Hey Xynth, I need you to find me stocks that have:

1. High abnormal options activity
2. Have had a change of more than 5% over the last month

Then for each of the top candidates, I need you to analyze their Technicals and bring me the top 3 candidates.

Then for each of these candidates, analyze their options chains 1 week out from now and then scout to see if there are any opportunities. Rank these opportunities based on risk/reward and gamma levels / likeliness to hit. For the top opportunity, break down the exact entry, target, and take profit levels.