ARTICLE SYNOPSIS ...Option Strategies and Neural Networks by Thomas B. Rubino Jr. Confidence intervals are a statistical tool that describes the accuracy of a prediction, while neural networks provide predictions. This article combines the two to define the risk in a trade. In recent years, neural networks have gained acceptance in solving problems related to portfolio management and market timing. Traders trust these models because they are accurate; nevertheless, many traders still view neural nets as a black box where data goes in one end and a prediction comes out the other. Now it's time to shine some lig...