John Bartleman is the President & CEO of TradeStation Group, Inc.
Artificial intelligence (AI) may be turning what was once expensive and exclusive into real-time knowledge, helping empower traders to elevate their craft.
Like any great trading tool, there’s a story arc to options trading and its rich history. That’s especially the case given its powerful impact on the markets and active traders over the decades.
That certainly includes me. I have been an options strategist over the last three decades. I’ve lived and breathed the world of options trading. I’ve seen and survived every major trading cycle, from analog to algorithm, from dial-up terminals to lightning-fast fiber, and I figured I had a good handle on where this industry was going.
Until AI took off.
I recently asked an AI assistant about a complex trading strategy that involves closing and reopening options positions in order to better manage risk and adapt to market changes. Within seconds, it had not only explained the plan in plain English but also analyzed the current market conditions, assessed timing and laid out a potential trade. All I had to do was watch the technology roll out the strategy.
Not only did my AI agent generate a great response, but it also asked follow-up questions about my portfolio, assessed implied market volatility levels and recommended a timing window, again, inside 20 to 30 seconds.
Saying the experience was a revelation for me isn’t nearly enough. Maybe mind-bending is a better term.
What once took teams of quants, sophisticated software and often massive institutional infrastructure to manage now takes a conversation where you enter a prompt and AI can take care of the rest—depending on your circumstances. Of course, options trading is still not for everyone, as it comes with the risk of losing more than you invested. But AI has been eye-opening for me as a skilled options trader.
The AI Conversation That Changed Everything
Veteran traders like me recall the 1990s and 2000s, which produced high-level options trading that lived inside institutional walls.
Bloomberg terminals are costly, and back then, access to trading tools required enterprise licenses. The software gurus were often Ph.D.s in math or computer science. One strategy could require weeks of research, expensive backtesting tools, manual risk modeling and other complexities.
Traders relied on dense textbooks, confusing brokerage terminal interfaces and a lack of personalized tools. Monitoring options positions meant tracking spreadsheets and called for constant screen-watching. The idea of a retail investor leveraging a highly sophisticated program like the one I asked AI about was laughable.
Fast-forward to 2025, and trading may be changing forever. For me, AI is serving as my personal quant team. Could an average retail investor leverage the same tool?
From my experience, the AI agent explained a complex market concept in real time and tailored the strategy to my individual risk tolerance. We are already seeing these AI agents integrate directly into trading platforms. With that integration, AI agents could be involved in trade execution, market monitoring and even alerts. AI may be revolutionizing trading by unlocking real-time analytics, natural language learning and automated execution.
Calling this transformation just a technological leap isn’t doing the technology justice.
The Democratization Of Strategy—With New Risks
In my opinion, this is just the start.
Retail traders now have access to iron condors, butterfly spreads, calendar spreads and complex futures or cross-asset options trading plays. That’s exciting for retail investors, as what used to be institutional-grade is now increasingly intuitive. But it is extremely important to understand trading and the risks that go with it.
Admittedly, it’s still early, and the future remains largely unknown, but early indications suggest the results are equally powerful.
In my 30 years as a trader, I’ve seen a dramatic shift in trading accessibility due to AI. Fifteen or 20 years ago, there was little to no AI-driven technology available, and advanced tools were largely limited to high-net-worth or institutional traders. Today, retail traders have access to affordable AI-powered tools that were once out of reach, fundamentally changing how traders trade.
Yet, as always with transformative technologies, there are important caveats. For instance, AI can create overconfidence—a major risk, as traders, especially inexperienced ones, might execute complex strategies without fully grasping the underlying risk exposures.
Another potential risk with automated execution is that high market volatility or technological issues may lead to orders being only partially executed, executed at unfavorable prices or not executed at all.
On top of that, many AI-driven models function as “black boxes,” providing little transparency into how decisions are made.
These risks may grow exponentially as AI trading technologies become more pervasive and people who are not skilled enough to use them overextend themselves. That’s why education and testing matter more than ever. As I continued using the tools as guidance, I realized education guardrails aren’t a luxury; they are a necessity. After a few months of using the technology, it’s apparent that AI should be a teacher and a tool and used with great caution.
What’s Next: The Six-Month Revolution Cycle
The pace of AI innovation is staggering. In a short period of time, we’ve gone from AI explaining trades to AI executing them. By year-end, I expect to see personalized portfolio management across asset classes, predictive analytics that anticipate market events and risk models that adjust dynamically based on macro shifts.
This is no five-year forecast. This is happening right now.
For options traders, the message is clear: You can embrace this shift, but stay smart. Do your due diligence, and keep asking questions. Additionally, get a good grip on the “why” behind every trading recommendation, and learn the tools, don’t just use them. It’s also extremely important to understand the risk if the strategy goes against you, particularly with options trading.
When I first learned about the trading strategy I mentioned earlier, it took hours to grasp and days to model. Now, thanks to AI, I can teach it, test it and trade it before my coffee gets cold.
AI has made trading smarter, faster and more personal. But it hasn’t removed the need for responsibility, education and curiosity. That’s the real revolution, and I’m here for it.
Options trading isn’t suitable for all investors. See the OCC’s Characteristics and Risks of Standardized Options. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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