How BZsignals Works

A daily automated pipeline that screens stocks, scores them with AI, tracks OTM call options, and emails you when something is worth entering.

The Strategy

Every weekday after market close, BZsignals scans all NASDAQ and NYSE stocks against 9 screening filters to find stocks in a strong uptrend with room to move. Candidates that pass have their best 3-month just-OTM call identified — those with a qualifying contract are reviewed by the AI. If the AI issues an ENTER signal, the system begins tracking that option — entry price recorded the following evening at end-of-day mid — until a mechanical exit rule fires.

The 9 Screening Filters

All 9 must pass for a stock to enter AI scoring.

1

Price ≥ $10

Sub-$10 stocks have structurally wide option spreads and thin open interest

2

Avg Daily Dollar Volume ≥ $10M

Equity turnover proxy — below this threshold options chains are almost always unusable

3

Price > EMA 50

Stock is above its 50-day trend

4

Price > EMA 200

Stock is above its 200-day trend

5

EMA 50 > EMA 200

Short-term trend above long-term (golden cross zone)

6

3-Month Performance > 10%

Strong recent momentum

7

RSI(14) below 70

Not overextended — stocks above 70 are parabolic and likely to mean-revert

8

ATR(14) 4–9% of price

Enough movement to make an option worthwhile, not so volatile the premium is prohibitive

9

Market Cap > $1B

Established enough to have liquid options

+ Estimated next earnings date is passed to the AI as context. Trades with earnings near expiry are scored down.

Daily Pipeline

Evening Runner — 4:30 PM ET weekdays
1
Record pending entries & exits

For any ENTER signal issued last night, fetches today's best available EOD option mid and records it as the tracked entry price — the P&L baseline. For any position flagged for exit last night, records today's EOD mid as the tracked exit price and marks the position closed.

2
Screen stocks

Scans all ~5,500 NASDAQ/NYSE stocks, applies the 9 filters, and saves the day's signals.

3
AI scoring

For each signal, fetches the best just-OTM call targeting 90–120 DTE, checking option quality gates (open interest, delta, day volume, mid price) — if the stock has no listed expiry in that window, nearby expiries compete for the same gates instead, with the one closest to the 90-day target winning among whatever qualifies. Stocks with no qualifying contract are skipped. Qualifying pairs go to the AI for a 0–100 score across four dimensions — an ENTER is issued when the score reaches 70.

4
EOD option snapshot

For every open position, fetches today's option prices and Greeks from live market data and stores them for the P&L chart.

5
Exit rule check

Checks every open position against the 2 mechanical exit rules (Time Stop, Day-45) using EOD prices. Also evaluates the Win Flag — an observation log, not a close. When a rule fires, the position shows as pending exit — the actual exit price is recorded the following evening.

6
Nightly email digest

Sends one consolidated email with: ENTER signals (with tonight's reference option snapshot — entry price recorded next evening), EXIT SIGNALS flagged tonight (exit price recorded next evening), OPEN POSITIONS with current P&L, and all stocks scored tonight with a one-sentence rationale.

Scoring System

AI Score0–100

For each stock that passes the 9 filters, the system fetches the best just-OTM call targeting 90–120 DTE (falling back to whatever expiry is closest to that target if none is listed in the window) from live options data. The option must clear quality gates (minimum open interest, minimum delta, minimum day volume, minimum mid price) before the AI sees it. It scores the trade 0–100 across four sub-dimensions — technical momentum, option quality, risk/reward, and market regime — then sums them for a total. A score of 70 or above triggers an ENTER. Risk factors like upcoming earnings, elevated IV, or parabolic moves are weighted into the score — not automatic disqualifiers.

DimensionExampleMax
Momentum22/ 30
Option quality18/ 25
Risk / reward20/ 25
Market regime14/ 20
Total74 → ENTER/ 100

Enter Signalscore ≥ 70

When a score of 70 or above is returned, an ENTER SIGNAL is issued and appears in that night's nightly digest email with the full rationale and tonight's option reference snapshot. The actual entry is recorded the following evening using that day's best available end-of-day option mid, giving a realistic fill price as the P&L baseline.

Mechanical Exit Rules

Checked every evening after the EOD option snapshot. No manual decisions — all exits are automatic.

1
Time Stop≤ 30 days to expiry

Option is too close to expiration to hold. Flagged for exit unconditionally regardless of profit/loss.

2
Day-45 RuleDay ≥ 45, extrinsic < 20% of entry premium, position underwater

By day 45, if the option's extrinsic value has decayed below 20% of entry premium and the position is still at a loss, the thesis hasn't paid — flagged for exit. The P&L guard (current mid < entry mid) makes it structurally impossible to flag a winner.

3
Win FlagDelta > 0.85 or option up > 150%

Not a close — a logged observation. When the option goes deep ITM (convexity exhausted) or the premium hits 2.5× entry (IV-path winner), the event is recorded and the position stays open. Rules 1 and 2 handle the actual exit. Tracking give-back from flag to exit calibrates whether the eventual rule should be close, scale, or roll.

Email Alerts

Nightly Digest

~5 PM ET, every weekday — one email with everything

Always sent. Sections appear as needed: ENTER SIGNALS (ticker, score, rationale, tonight's reference option snapshot — entry price recorded next evening), EXIT SIGNALS (position flagged for exit tonight — exit price recorded next evening), OPEN POSITIONS (current stock price, option mid, and P&L for every active tracked position), and REVIEWED TONIGHT (every stock the AI scored with one-sentence rationale). Subject line reflects the night's highlights — e.g. "BZsignals ENTER: ANET — Score 70/100 (2026-07-08)" or "BZsignals Nightly Digest — 4 scored, no enters (2026-07-08)".

Option Tracking

Entry Recorded

~5 PM ET, next trading day after signal

  • Stock price at entry
  • Contract ticker
  • Strike & expiry
  • Bid / Ask / Mid
  • IV, Delta

Daily Snapshot

~5 PM ET, every market day from Day 1

  • Stock price
  • Bid / Ask / Mid
  • IV, Delta, Theta
  • Vega, Gamma

At Exit

~5 PM ET, evening after exit rule fires

  • Exit reason
  • EOD stock price
  • Bid / Ask / Mid at close
  • Days held
  • Final P&L on Analysis page

App Pages

Signals/signals

Full historical database of every stock that passed the 9 filters. Sortable and filterable by sector, date, and all technical columns. Expand any row to see a 12-month price chart. Use the Entered & Closed view (pill button) for a track record of all closed positions with win stats.

Analysis/analysis

Tracks every position where the AI scored ≥ 70 and triggered an ENTER. Each position has a status: Pending (entry not yet recorded), Open (active), Exiting (exit rule fired — exit price recorded next evening), or Closed. Shows option entry details, current P&L tracked via daily snapshots, and exit reason when closed. Expand any row to see a daily Greeks chart (Delta %, IV %, Theta cost, Vega %).

Help/help

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