Methodology fused from professional options trading frameworks; all text is an original paraphrase.
Defaults
| Parameter |
Default Value |
Rationale |
| min_days_to_expiry |
45 |
Buying strategies need time for thesis to develop |
| max_days_to_expiry_sell |
45 |
Selling strategies capture theta decay in 30-45 day window |
| exit_dte_threshold |
21 |
Exit or roll buying strategies before 21 DTE to avoid gamma risk |
| bid_ask_max_spread |
5% |
Illiquid options destroy edge through wide spreads |
| max_position_risk |
2% |
Maximum capital risk per single options trade |
Preflight
Run canonical pre-flight per contracts/preflight.md. Propagate X-Agentii-Trace per contracts/x-agentii-trace-header.md.
Data Source Priority
- Options execution framework —
references/options-strategies.md (bundled strategy reference)
- Upstream context — market structure from
price-action + pattern identification from chart-patterns
- Options setups —
search_technical_setups(instrument_scope=["option"], ...) for matching against gold.technical_setups
Methodology
Retrieval Scope
structured_only
Retrieval Strategy
This skill follows Branch (d) Simple Lookup from contracts/retrieval.md: the strategy framework is bundled in references/options-strategies.md. Real-time data via get_realtime_quote. Matched options setups via search_technical_setups(instrument_scope=["option"]). No unstructured document retrieval.
Temporal Scope
See frontmatter temporal_scope block.
Tool Allowlist
See frontmatter allowed_tools.
Protocol
This skill implements a professional options execution framework. Options are treated as execution tools for expressing directional or volatility views with defined risk — not as standalone gambling instruments. The framework applies three mandatory filters (liquidity, cost, volatility) before any strategy selection. Detailed strategy definitions, the strategy→market condition matrix, and execution rules are in references/options-strategies.md.
Step 1 — Macro and Volatility Context
- Assess broad market volatility via VIX or equivalent from
get_realtime_quote.
- Classify IV environment: High IV (> 70th percentile) → favor premium-selling strategies. Low IV (< 30th percentile) → favor premium-buying strategies. Mid-range → balanced.
- Macro regime from upstream analysis: expansion favors longs, contraction favors shorts; high uncertainty favors straddle/strangle.
Step 2 — Directional Thesis Input
- Receive Always In direction from
price-action skill.
- Receive primary pattern and confidence level from
chart-patterns skill.
- If no upstream context: derive from raw price data and fundamental thesis.
- Classify thesis: Bullish / Bearish / Neutral / Direction-uncertain-large-move-expected.
Step 3 — Strategy Selection
Apply the strategy matrix to select the appropriate options structure:
- Apply filters: Check liquidity (bid-ask spread), cost (premium vs position), IV environment.
- Map thesis to strategy: Use the strategy→condition matrix in
references/options-strategies.md.
- Query pipeline setups:
search_technical_setups(instrument_scope=["option"], pattern_type=<derived>) for matching strategy setups from gold.technical_setups.
- Load full setup:
get_technical_setup(setup_id=<best_match>) for exact parameters.
- Fallback: Use manual strategy rules from the reference.
Step 4 — Execution Plan
- Strike selection: OTM for directional (delta 0.40-0.60), ATM for straddles, OTM for strangles.
- Expiry selection: 45-60 DTE for buying strategies, 30-45 DTE for selling strategies.
- Position sizing: Risk/contract ≤ 2% of capital. For selling strategies, size on notional exposure.
- Exit plan: Profit target, time stop (21 DTE for buys), stop loss level.
- Invalidation: Conditions that void the trade (thesis break, IV regime change, liquidity deterioration).
Step 5 — Trade Plan Output
- Strategy: Selected options strategy with justification from the matrix.
- Contract Specs: Strike(s), expiry, type (call/put), net debit/credit.
- Risk: Maximum loss in dollars and percentage of capital.
- Reward: Target profit, probability of profit (if calculable).
- Breakeven: Exact breakeven price(s) at expiration.
- Management Plan: Roll/adjust/exit conditions.
- Setup Match: If from
gold.technical_setups, include setup_id and research_score.
Output File
{ticker}/{YYYY-MM-DD_HHMM}_options-execution_{affix}.md
Output Structure
- Executive Summary — Selected strategy, market conditions, thesis alignment, key contract specs
- Volatility Context — IV percentile, IV environment classification, implications for strategy selection
- Directional Thesis — Price-action derived view, pattern context, confidence level
- Filter Results — Liquidity check (bid-ask), cost assessment, IV filter outcome
- Strategy Selection — Strategy matrix match, pipeline setup match (if any), justification
- Contract Specifications — Exact strikes, expiry, premiums, net debit/credit
- Risk and Reward — Max loss, max profit, breakeven(s), probability assessment
- Management Plan — Entry timing, profit targets, time stop, adjustment triggers
- Coverage Gaps — Data limitations, manual vs pipeline-derived parameters
Error Handling
| Error |
Fallback |
| No matching options setup from MCP |
Use manual strategy rules from references/options-strategies.md; flag coverage_gap |
| IV data unavailable |
Assume mid-range IV; flag as degraded |
| Bid-ask wider than 5% |
Flag as low-liquidity; suggest alternative strikes or skip |
| No directional thesis from upstream |
Derive from raw price data; flag as independently determined |
search_technical_setups unreachable |
Use full manual strategy matrix; flag all parameters |
Memory Load
See contracts/memory-load.md.
Snapshot
See contracts/snapshot-synthesis.md.
Final Summary (TUI)
Include ### Key Citations block with 0-10 clickable /v/ URLs referencing matched gold.technical_setups entries.
References
references/options-strategies.mdcontracts/citation-and-memory.mdcontracts/output-frontmatter-schema.mdcontracts/memory-load.mdcontracts/snapshot-synthesis.mdcontracts/preflight.mdcontracts/retrieval.md
1---2name: options-execution3description: Options trade execution, directional strategies long call covered call collar, spread strategies bull call bear put ratio ladder, volatility strategies straddle strangle strap strip, liquidity cost and implied volatility filters, integration with gold.technical_setups for options setup matching4---56> Methodology fused from professional options trading frameworks; all text is an original paraphrase.78## Defaults910| Parameter | Default Value | Rationale |11|-----------|---------------|-----------|12| min_days_to_expiry | 45 | Buying strategies need time for thesis to develop |13| max_days_to_expiry_sell | 45 | Selling strategies capture theta decay in 30-45 day window |14| exit_dte_threshold | 21 | Exit or roll buying strategies before 21 DTE to avoid gamma risk |15| bid_ask_max_spread | 5% | Illiquid options destroy edge through wide spreads |16| max_position_risk | 2% | Maximum capital risk per single options trade |1718## Preflight1920Run canonical pre-flight per `contracts/preflight.md`. Propagate X-Agentii-Trace per `contracts/x-agentii-trace-header.md`.2122## Data Source Priority23241. Options execution framework — `references/options-strategies.md` (bundled strategy reference)252. Upstream context — market structure from `price-action` + pattern identification from `chart-patterns`263. Options setups — `search_technical_setups(instrument_scope=["option"], ...)` for matching against `gold.technical_setups`2728## Methodology2930### Retrieval Scope31structured_only3233### Retrieval Strategy34This skill follows Branch (d) Simple Lookup from `contracts/retrieval.md`: the strategy framework is bundled in `references/options-strategies.md`. Real-time data via `get_realtime_quote`. Matched options setups via `search_technical_setups(instrument_scope=["option"])`. No unstructured document retrieval.3536### Temporal Scope37See frontmatter temporal_scope block.3839### Tool Allowlist40See frontmatter allowed_tools.4142### Protocol4344This skill implements a professional options execution framework. Options are treated as execution tools for expressing directional or volatility views with defined risk — not as standalone gambling instruments. The framework applies three mandatory filters (liquidity, cost, volatility) before any strategy selection. Detailed strategy definitions, the strategy→market condition matrix, and execution rules are in `references/options-strategies.md`.4546#### Step 1 — Macro and Volatility Context47481. Assess broad market volatility via VIX or equivalent from `get_realtime_quote`.492. Classify IV environment: High IV (> 70th percentile) → favor premium-selling strategies. Low IV (< 30th percentile) → favor premium-buying strategies. Mid-range → balanced.503. Macro regime from upstream analysis: expansion favors longs, contraction favors shorts; high uncertainty favors straddle/strangle.5152#### Step 2 — Directional Thesis Input53541. Receive Always In direction from `price-action` skill.552. Receive primary pattern and confidence level from `chart-patterns` skill.563. If no upstream context: derive from raw price data and fundamental thesis.574. Classify thesis: Bullish / Bearish / Neutral / Direction-uncertain-large-move-expected.5859#### Step 3 — Strategy Selection6061Apply the strategy matrix to select the appropriate options structure:62631. **Apply filters**: Check liquidity (bid-ask spread), cost (premium vs position), IV environment.642. **Map thesis to strategy**: Use the strategy→condition matrix in `references/options-strategies.md`.653. **Query pipeline setups**: `search_technical_setups(instrument_scope=["option"], pattern_type=<derived>)` for matching strategy setups from `gold.technical_setups`.664. **Load full setup**: `get_technical_setup(setup_id=<best_match>)` for exact parameters.675. **Fallback**: Use manual strategy rules from the reference.6869#### Step 4 — Execution Plan70711. **Strike selection**: OTM for directional (delta 0.40-0.60), ATM for straddles, OTM for strangles.722. **Expiry selection**: 45-60 DTE for buying strategies, 30-45 DTE for selling strategies.733. **Position sizing**: Risk/contract ≤ 2% of capital. For selling strategies, size on notional exposure.744. **Exit plan**: Profit target, time stop (21 DTE for buys), stop loss level.755. **Invalidation**: Conditions that void the trade (thesis break, IV regime change, liquidity deterioration).7677#### Step 5 — Trade Plan Output78791. **Strategy**: Selected options strategy with justification from the matrix.802. **Contract Specs**: Strike(s), expiry, type (call/put), net debit/credit.813. **Risk**: Maximum loss in dollars and percentage of capital.824. **Reward**: Target profit, probability of profit (if calculable).835. **Breakeven**: Exact breakeven price(s) at expiration.846. **Management Plan**: Roll/adjust/exit conditions.857. **Setup Match**: If from `gold.technical_setups`, include setup_id and research_score.8687## Output File8889`{ticker}/{YYYY-MM-DD_HHMM}_options-execution_{affix}.md`9091## Output Structure92931. **Executive Summary** — Selected strategy, market conditions, thesis alignment, key contract specs942. **Volatility Context** — IV percentile, IV environment classification, implications for strategy selection953. **Directional Thesis** — Price-action derived view, pattern context, confidence level964. **Filter Results** — Liquidity check (bid-ask), cost assessment, IV filter outcome975. **Strategy Selection** — Strategy matrix match, pipeline setup match (if any), justification986. **Contract Specifications** — Exact strikes, expiry, premiums, net debit/credit997. **Risk and Reward** — Max loss, max profit, breakeven(s), probability assessment1008. **Management Plan** — Entry timing, profit targets, time stop, adjustment triggers1019. **Coverage Gaps** — Data limitations, manual vs pipeline-derived parameters102103## Error Handling104105| Error | Fallback |106|-------|----------|107| No matching options setup from MCP | Use manual strategy rules from references/options-strategies.md; flag coverage_gap |108| IV data unavailable | Assume mid-range IV; flag as degraded |109| Bid-ask wider than 5% | Flag as low-liquidity; suggest alternative strikes or skip |110| No directional thesis from upstream | Derive from raw price data; flag as independently determined |111| `search_technical_setups` unreachable | Use full manual strategy matrix; flag all parameters |112113## Memory Load114115See `contracts/memory-load.md`.116117## Snapshot118119See `contracts/snapshot-synthesis.md`.120121## Final Summary (TUI)122123Include ### Key Citations block with 0-10 clickable /v/ URLs referencing matched `gold.technical_setups` entries.124125## References126127- `references/options-strategies.md`128- `contracts/citation-and-memory.md`129- `contracts/output-frontmatter-schema.md`130- `contracts/memory-load.md`131- `contracts/snapshot-synthesis.md`132- `contracts/preflight.md`133- `contracts/retrieval.md`
agentii-ai