We apply stochastic methods to stocks! The predictive values obtained from our algorithm are reflected in the percentages assigned to the stock going up and down. We can then decide on the best strategy for each stock: call, put or spread options for instance.

A call option earns money if the stock value goes up, as Wikipedia explains:


On the other hand, a put option earns money if the stock value goes down. Here is the corresponding graph in Wikipedia:


If the predictive values for up or down are similar, a spread option will be safer as it offers some protection. More complex strategies exist, such as straddles, butterflies or iron condors.

Investing in stocks is very risky, even more so when derivatives are involved. We recommend using "virtual money" (Optionshouse is very good).