options-strategist

Options Strategist

Analyze options chains, construct multi-leg strategies, calculate Greek risk metrics, and generate structured trade recommendations using real-time options data from the Finskills API. Combines quantitative options theory with live market data to evaluate opportunity and manage risk.

Setup

API Key required — Register at https://finskills.net to get your free key. Header: X-API-Key: > Get your API key: Register at https://finskills.net — free tier available, Pro plan unlocks real-time quotes, history, and financials.

When to Activate This Skill

Activate when the user:

Required Information

Resolve before starting: 1. Underlying ticker — e.g., SPY, AAPL 2. Directional outlook — Bullish / Bearish / Neutral / Volatile / Non-volatile 3. Time horizon — Days to target expiration (e.g., 30, 45, 60 DTE) 4. Risk tolerance — Defined-risk vs. undefined-risk strategies preferred 5. Account level — Options approval level (Level 1–4) if known

Data Retrieval — Finskills API Calls

1. Real-Time Quote

GET https://finskills.net/v1/stocks/quote/{SYMBOL}

2. Options Chain

GET https://finskills.net/v1/stocks/options/{SYMBOL}

3. Historical Price (for IV Rank / Realized Vol)

GET https://finskills.net/v1/stocks/history/{SYMBOL}?period=1y&interval=1d

Analysis Workflow

Step 1 — Market Context

From the quote data, note:

Step 2 — Volatility Analysis

Using the options chain and historical data:

Implied Volatility Metrics:

Volatility Skew: Compare put IV vs. call IV at equidistant strikes

HV vs. IV Comparison:

Step 3 — Strategy Selection Matrix

Based on outlook and volatility environment:

| Outlook | IV Environment | Recommended Strategy | |---------|----------------|---------------------| | Bullish | Low IV | Long Call, Bull Call Spread | | Bullish | High IV | Cash-Secured Put (sell put), Bull Put Spread | | Bearish | Low IV | Long Put, Bear Put Spread | | Bearish | High IV | Bear Call Spread, Covered Call | | Neutral (non-volatile) | High IV | Iron Condor, Short Strangle, Short Straddle | | Neutral (volatile) | Low IV | Long Straddle, Long Strangle | | Mildly Bullish | High IV | Covered Call, Bull Put Spread | | Hedge existing long | Any | Protective Put, Collar |

Always prefer defined-risk strategies unless user explicitly requests undefined risk.

Step 4 — Strike and Expiration Selection

Expiration guidelines:

Strike selection guidelines:

Step 5 — Strategy Metrics Calculation

For the recommended strategy (manual calculation using API data):

For Debit Spreads (e.g., Bull Call Spread):

Max Profit  = (Width of spread − Net debit) × 100
Max Loss    = Net debit × 100
Break-Even  = Long strike + Net debit paid
ROI at max  = Max Profit / Max Loss × 100%

For Credit Spreads (e.g., Bull Put Spread):

Max Profit  = Net credit received × 100
Max Loss    = (Width of spread − Net credit) × 100
Break-Even  = Short strike − Net credit received
Probability of Profit ≈ 1 − short put delta (as %)

For Iron Condors:

Max Profit  = Total net credit × 100
Max Loss    = (Width of widest wing − Total credit) × 100
Lower B/E   = Short put strike − Total credit
Upper B/E   = Short call strike + Total credit

Greeks for the position:

Step 6 — Risk Management Rules

Always state: 1. Max loss cap: Risk no more than 2–5% of portfolio per trade 2. Exit at 50% max profit (for credit strategies): Lock in profit, reinvest theta 3. Exit at 2× max credit (stop-loss): Close if spread doubles in value against you 4. Adjust or roll if: Underlying breaches short strike by more than 1 strike width 5. Earnings blackout: Close or roll before earnings if not intentionally an earnings play

Output Format

╔══════════════════════════════════════════════════════╗
║     OPTIONS STRATEGY REPORT — {TICKER} ({DATE})     ║
╚══════════════════════════════════════════════════════╝
📌 UNDERLYING
  {Ticker}: ${price}  Change: {%}  Outlook: {Bullish/Bearish/Neutral}
📊 VOLATILITY ENVIRONMENT
  ATM IV:        {%}    IV Rank: {0–100} → {Low/Elevated/High}
  HV20:          {%}    HV60: {%}
  IV vs HV:      {premium/discount}
  Skew:          {Positive/Flat/Negative} — {one-line interpretation}
  Recommendation: {Sell premium / Buy premium}
🎯 RECOMMENDED STRATEGY: {STRATEGY NAME}
  Structure:
    Leg 1: {BUY/SELL} {qty} {TICKER} {Strike} {Exp} {CALL/PUT}  @ ${price}
    Leg 2: {BUY/SELL} {qty} {TICKER} {Strike} {Exp} {CALL/PUT}  @ ${price}
    [Additional legs if applicable]
  Net {Debit/Credit}: ${amount} per contract
  📐 Key Metrics:
    Max Profit:   ${amount} ({%} ROI)
    Max Loss:     ${amount}
    Break-Even:   ${price} [{direction} from current]
    Prob of Profit: {%}
    Days to Exp:  {DTE} days
  📉 Position Greeks (per contract):
    Delta: {value}  Gamma: {value}  Theta: {value}/day  Vega: {value}
  💼 Risk Management:
    ✓ Profit target: Close at 50% max profit (${amount} credit remaining)
    ✓ Stop-loss: Close if debit/spread reaches ${amount} (2× initial credit)
    ✓ Time exit: Close or roll at 21 DTE to avoid gamma risk
📋 ALTERNATIVE STRATEGIES CONSIDERED
  {Alternative 1}: {brief rationale for/against}
  {Alternative 2}: {brief rationale for/against}
⚠️ KEY RISKS
  • {Risk 1 — e.g., earnings announcement within DTE, sudden vol crush}
  • {Risk 2 — e.g., gap risk if undefined risk}

Limitations

API Key required — Register at https://finskills.net to get your free key. Header: X-API-Key: > Get your API key: Register at https://finskills.net — free tier available, Pro plan unlocks real-time quotes, history, and financials.