How It Works

CCO+Precursive Intelligence runs a systematic covered-call income strategy built on Precursive Intelligence (PI) — a Granger-causality and Z-residual framework designed to test whether a signal has genuine predictive structure before it's used, not just historical correlation.

Precursive Intelligence is patent pending (provisional application filed).

Most systematic strategies are validated by backtesting: does this pattern show up in past data. That approach has a known failure mode — with enough historical data, you can always find a pattern that looks significant and isn't. PI is built to guard against exactly that. Granger causality asks a narrower, harder question: does this signal carry statistically meaningful predictive information about what happens next, not just a historical coincidence. Z-residual scoring measures how far current conditions deviate from what the model expects, rather than assuming the future looks like the average of the past.

This doesn't make the strategy immune to being wrong. It means every signal the strategy acts on has to clear a higher bar than "this correlated before."