options-strategy-advisor

Options Strategy Advisor

Overview

This skill provides comprehensive options strategy analysis and education using theoretical pricing models. It helps traders understand, analyze, and simulate options strategies without requiring real-time market data subscriptions.

Core Capabilities:

• Black-Scholes Pricing: Theoretical option prices and Greeks calculation
• Strategy Simulation: P/L analysis for major options strategies
• Earnings Strategies: Pre-earnings volatility plays integrated with Earnings Calendar
• Risk Management: Position sizing, Greeks exposure, max loss/profit analysis
• Educational Focus: Detailed explanations of strategies and risk metrics

Data Sources:

• FMP API: Stock prices, historical volatility, dividends, earnings dates
• User Input: Implied volatility (IV), risk-free rate
• Theoretical Models: Black-Scholes for pricing and Greeks

When to Use This Skill

Use this skill when:

• User asks about options strategies ("What's a covered call?", "How does an iron condor work?")
• User wants to simulate strategy P/L ("What's my max profit on a bull call spread?")
• User needs Greeks analysis ("What's my delta exposure?")
• User asks about earnings strategies ("Should I buy a straddle before earnings?")
• User wants to compare strategies ("Covered call vs protective put?")
• User needs position sizing guidance ("How many contracts should I trade?")
• User asks about volatility ("Is IV high right now?")

Example requests:

• "Analyze a covered call on AAPL"
• "What's the P/L on a $100/$105 bull call spread on MSFT?"
• "Should I trade a straddle before NVDA earnings?"
• "Calculate Greeks for my iron condor position"
• "Compare protective put vs covered call for downside protection"

Supported Strategies

Income Strategies

1. Covered Call - Own stock, sell call (generate income, cap upside)
2. Cash-Secured Put - Sell put with cash backing (collect premium, willing to buy stock)
3. Poor Man's Covered Call - LEAPS call + short near-term call (capital efficient)