Options trading bot, explained simply

EMPOBOT is a rule-based options trading bot. It finds suitable stocks, matches your outlook to a fixed strategy, sizes each trade by its worst-case loss and manages the exit — while you stay in control.

Try it on paper money

How the bot works

1. Find the right stock
The bot scans for liquid stocks (lots of daily volume, tight option prices) and checks implied volatility so it knows whether options are cheap or expensive.
2. Match the strategy to the outlook
Up, down, sideways or a big move — each outlook maps to a fixed template. Expensive options favour selling; cheap options favour buying.
3. Size by the worst case
Every trade is sized from its maximum possible loss, never from hope. You choose the risk per trade; the bot will not exceed it.
4. Build from the live chain
Contracts are picked server-side from the live option chain at the moment you place the order, so prices and strikes are current.
5. Manage the exit
Profit targets and stop levels are saved as price rules on the option premium and checked automatically.
6. You stay in control
Start on paper money. The AI only explains — rules decide, and nothing is sent without the limits you set.

Iron Condor

Get paid while a stock stays inside a price range.

Sell a put below today's price and buy a cheaper put further below (protection).
Sell a call above today's price and buy a cheaper call further above (protection).
You collect a credit up front. If the stock ends between the two sold strikes, you keep it.

When to use it: You expect a quiet stock and options are expensive (high IV Rank).

Max profit: The credit collected. Max loss: Width of one spread minus the credit — known before you trade.

Risk: A sharp move through either side hits the max loss.
Risk: Earnings or news can break the range overnight.

Covered Call

Earn extra income on 100 shares you already own.

Own 100 shares of a stock.
Sell one call above today's price and collect the premium.
If the stock stays below that price, you keep the shares and the premium. If it rises above, your shares are sold at that price.

When to use it: You are happy holding the stock and would be fine selling it at a higher price.

Max profit: Premium plus the rise up to the call strike. Max loss: Same as owning the shares (the stock can fall), reduced by the premium.

Risk: Upside above the strike is given away.
Risk: The premium only cushions a fall a little.

The Wheel

A repeating cycle: sell puts to buy shares, then sell calls to sell them.

Step 1: Sell a cash-secured put on a stock you'd like to own. Keep the premium.
Step 2: If the shares are assigned to you, you now own 100 shares at a discount.
Step 3: Sell covered calls on those shares until they are called away — then start again.

When to use it: Calm or slowly rising stocks you genuinely want to own, with enough cash to buy 100 shares.

Max profit: The premiums collected each cycle plus any rise up to the call strike. Max loss: Like owning the stock: a large fall is a real loss, softened by premiums.

Risk: Needs a lot of cash per stock.
Risk: A falling stock can leave you holding shares worth less than you paid.

Questions

Does the bot trade real money?

Only if you connect a live broker account. Every account can start on Alpaca paper trading, which uses simulated money.

Can the bot lose more than I expect?

Defined-risk strategies like the Iron Condor have a known maximum loss, and EMPOBOT sizes trades from it. Strategies that involve shares (Covered Call, The Wheel) carry the same risk as owning the stock.

Does AI decide the trades?

No. Fixed rules choose and size trades. The AI explains them in plain language and never places orders on its own.