AI isn’t a genie in a lamp that’ll magically make you rich. However as you gain experience and start asking the right questions, it turns into a do-it-all assistant that can analyze scenarios, flag risks, and help lay out smart buying or selling opportunities, especially when you’re making strategic downside plays.

After Trump’s “Liberation Day” announcement, which made 25% tariffs on imported vehicles and parts official, along with reciprocal tariffs aimed at the EU and others—the next day on Wall Street was a bloodbath. Stocks spiraled. Sentiment cratered.

Like most investors, I felt the sting as some of my long-term holdings took a hit. However unlike many investors, I’ve been using AI to prepare and those sessions helped me hedge and even profit through the chaos.

This article breaks down exactly how I did it—and how you can too.

Now, let’s walk through the strategies, prompts, and trades I used with the help of AI—plus the key lessons that’ll help you stay ready, so you won’t have to get ready!

How I used AI to Build a Tariff Strategy

When tariffs were first back on the table, I turned to AI to help map out a playbook: uncover overlooked sectors, identify risk, and zero in on specific trades worth targeting.

Here’s what I initially asked—and what you can ask too:

“Given the rising tariff talk from Trump, what sectors and stocks are most at risk? Which put strategies could profit if the market drops?”

From there, that single prompt kicked off a strategy session where AI helped me organize the chaos and create a game plan. Together, we mapped out:

• High-risk sectors: Tech (XLK), Semis (SMH), Autos (Ford, GM, Stellantis), and Retail (Nike, Target)
• Put ideas: XLK, SMH, and QQQ spreads with defined risk
• Hedging tactics: VIX calls, SPY put spreads, and shorting junk bond ETFs
• Recovery watchlist: High-quality tech names to scoop up during the dip (NVDA, META, AMZN)

AI helped structure my thinking and I picked the plays I wanted to attack. When the market tanked after the announcement, that prep paid off.

The Plays That Worked

Real Trades, Real Returns: AI in Action

Let’s talk execution. These are the trades I either made or planned based on my AI sessions—tactical, realistic, and rooted in a clear thesis.

✅ 1. XLK Puts

• Why: XLK is loaded with AAPL, MSFT, and NVDA—companies that are both tariff-sensitive and had become overbought.
• How it performed: I entered this put before “Liberation Day” and sold it for a 149% return as XLK and the broader tech sector dropped sharply.
• AI helped by: Identifying XLK as a key sector ETF to target, suggesting strike prices, and helping shape the overall strategy.

In fact, this is a play I’ve rinsed and repeated. I also took XLK puts back in early March when Trump was floating tariffs on Mexico and Canada, and closed that position for an 80% return.

✅ 2. SMH (Semiconductors)

• Why: Heavy China exposure, AI rally fatigue, and looming tariffs = major supply chain pain.
• Entry: I entered a put position around the $215–218 bounce zone on April 2, right before the tariffs were officially announced. By April 4, SMH had dropped to around $178—and we profited handsomely.
• AI helped by: Mapping out ideal entry levels and suggesting put spread structures to reduce premium costs and manage risk.

✅ 3. SPY + QQQ Put Setups

• Why: These provided broader market hedges with high liquidity and cleaner execution.
• Strategy: Waited for a bounce, entered put spreads with trailing stops to manage risk and capture downside.
• AI helped by: Offering optimal strike ranges and setting up a plan for trailing stop discipline.

AI also built downloadable spreadsheets for me that included entry zones, target prices, stop levels, and key trade notes. While it doesn’t always have real-time pricing—especially for fast-moving options—you can plug in current data, and it’ll build a strategy around it.

🧠 New to options? Remember calls are a bet that a stock will rise, puts are a bet a stock will fall.

Say to ChatGPT “I’m new to options trading—explain it to me in simple terms. How can I use it to protect my portfolio or profit whether the market goes up or down? Give me a real example using a stock like Apple or Ford.”

How You Can Profit From AI Too

1. Bring Your Ideas to the Table

Don’t expect AI to do all the work for you. Start with your concerns (like tariffs, inflation, or earnings season), then ask questions like:

• “What sectors are most exposed if ______ happens?”
• “How can I hedge my portfolio against ______?”
• “Give me 3 put strategies for this ETF or sector.”

You provide the idea—AI helps build the playbook.

2. Let AI Be Your Second Set of Eyes

AI isn’t just for trade ideas—it’s there to help you think more strategically. You can use it to:

• Break down risk/reward scenarios
• Turn one idea into a few smart plays.
• Recommend strike prices and expiration dates
• Flag when to wait for better entries

It’s like having a calm, always-ready investing assistant in your corner.

3. Keep a Strategy Tracker

AI can build simple spreadsheets to help you stay organized and focused. Track things like:

• Put spreads you’re watching or currently in
• Laddered hedges for different market outcomes
• Rebound watchlists with price targets
• Alerts tied to specific triggers or technical levels

Together, these tools help you play the game like a pro and stay one step ahead.

AI Won’t (Necessarily) Make You Rich—But It Will Keep You Ready

I’ve been investing for over a decade, testing different strategies, managing drawdowns, and learning from mistakes. AI didn’t hand me success on a silver platter—but it gave me clarity, structure, and speed. It helped me zoom out and think more like a portfolio manager, not just react like a trader.

And you can do the same.

The best part? You don’t need a finance degree or insider access. You just need a clear idea, curiosity, and a willingness to learn and take action. AI helps fill the gaps and once you get comfortable prompting it the right way, the possibilities are endless.

👉 Want to see how I use ChatGPT to build investing strategies step-by-step? Download my free guide, “How to Invest with ChatGPT,” and subscribe below for updates on new tools, strategies, and AI walkthroughs.

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Disclaimer: AI should never be a substitute for professional financial advice. Always do your own research or speak with a financial advisor before making any investment decisions. Shorting or betting against the market carries significant risk and should be done with caution. A more conservative strategy is simply staying patient and buying strong companies when opportunities arise.