The conviction composite scores a setup from zero to one hundred by combining a directional read with an options-market read. This video walks the breakdown behind the letter grade, what the machine learning chip beside it means, and why the two disagreeing is useful information.
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Conviction is a composite score from zero to one hundred, shown as a grade from A to F. It answers one question: how well does this setup hold together right now. It combines two independent things, and the reason to look at the breakdown rather than the letter is that they can disagree.
The first half is the directional read: trend, momentum, and where price sits in its range, from the same indicators the scanner uses. Every component is shown with what it contributed, so a grade built on one very strong input and four weak ones does not look the same as a grade built on five agreeing ones.
The second half is whether the options market will let you express that view cleanly. Expiry quality, where implied volatility sits, how liquid the strikes are, and probability of profit. A strong directional read on a name with wide spreads and thin open interest is not a good trade, and this is where that shows up.
When the machine learning model has enough of your closed trades to have been trained, a second chip appears beside the grade with its own estimate. The two are built differently on purpose: the grade is rule-based and auditable, the model is learned from your history. When they disagree by more than one grade you get an amber flag. The flag is not a verdict. It is telling you the two methods do not agree, and that is worth a second look.
One thing this number will not do is get more optimistic about a skewed market. The smile adjustment can only subtract. A steep put smile warns against bullish credit spreads and a rich call wing warns against bear calls, and neither is treated as extra premium to harvest.
From here the engine's pick deep-links straight into the trade plan, which is the next video. Options Scanner is operated by Avenix Solutions LLC. It is not a broker-dealer and not an investment adviser, and it never holds customer funds. Thanks for watching.