How to Use AI for Stock and Options Trading - A Case Study on VRTV (Veritiv)

A 1,000% Stock Price Increase in 2 years Following a Key Contrarian Indicator

COVID-19 and Stock Market Events

During the challenging market conditions of March 2020 when global stock markets were selling off massively due to COVID-19 spreading, most companies were in the business of conserving capital and cutting costs. Oil companies and REITs were slashing their dividends. Companies froze all hiring. Merger and Acquisition deals were put on ice. The world was at a standstill and going into global lockdown as we watched the pandemic spread through our televisions in terror.

In the midst of this market downturn, Viritiv made a contrarian move by announcing a significant stock buyback, showcasing confidence in their business model and future prospects. Veritiv (VRTV)  specializes in product architecture and engineering for packaging and distribution. Their strategic decision to give cash back to shareholders while most other companies were hoarding cash would be puzzling, had it been witnessed. But the leadership knew what we did not: this was boom time for them. Every company that sold a product through retail stores now needed to package and ship that product to the front doors of people’s homes. They needed the packaging and design services that Veritiv provided, and they needed it immediately.

This demand had a transformative impact on the company's revenues and stock performance, leading to a remarkable 1,000% increase over the following two years. But few people have heard of this company or would have been bold enough to invest in it. That’s largely because most companies are not covered by the mainstream media. An average, independent investor is not able to monitor the 6,300 stocks in the U.S. stock exchanges - not without extremely powerful technology. 

Using AI for Stock Trading

LevelFields AI, an innovative AI system that scans the market for events proven to impact stock prices, enables investors to access timely and data-driven insights. By leveraging LevelFields AI, users can  monitor every stock in the market effortlessly. In the case of Veritiv, the AI flagged the stock buyback and placed it on the platform within an hour of the company announcement. Those seeing it could have experienced a 10X return on their investment, had they seen and reacted to the event.

The case of VRTV highlights the importance of understanding industry-specific events, making strategic decisions, and leveraging event-driven strategies for successful stock trading outcomes. Through the integration of LevelFields AI, stock and options traders can use the AI to enhance their decision-making process, analyze market responses, and optimize their stock and options trading strategies for success in the volatile stock market environment.

The relevance of LevelFields AI in this case study highlights the importance of utilizing innovative AI tools to navigate market dynamics, predict stock price movements, and optimize trading strategies for favorable stock and stock options trading results.

This case study was recently discussed in detail alongside additional topics outlined below on the Money Seed Podcast:

Key Discussion Points in the Podcast:

  • The strategic decision of VRTV to initiate a stock buyback during market downturn due to COVID-19.
  • The role of LevelFields AI to analyze data and historical trends, allowing investors to make more informed investment decisions rapidly.
  • The significant 1000% increase in stock price over the next 2 years as a result of the event-driven strategy.

Here are a few key takeaways from the conversation:

  • By leveraging the insights provided by AI, traders can make informed decisions rapidly, aligning their strategies with market events and trends for favorable outcomes.
  • Understanding industry dynamics and making informed decisions are crucial for successful stock and options trading outcomes.
  • Strategic decisions such as stock buybacks can have a significant impact on stock performance.
  • LevelFields AI exemplifies the power of combining strategic decision-making with advanced technology to achieve transformative results in the stock and options market.

Listen to the full podcast episode on Apple or Spotify


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