Options Analysis

Options Analysis

Use this skill for options-specific analysis on stocks or ETFs.

Workflow

1. Frame the setup:
   • underlying
   • structure
   • expiry
   • strike(s)
   • user intent
2. Confirm the data:
   • underlying price
   • option chain
   • premium
   • IV or volatility proxy
   • liquidity if available
3. Evaluate:
   • structure and directional bias
   • volatility and time decay
   • liquidity
   • max gain, max loss, breakeven
4. Compare with the nearest practical alternatives when useful.
5. Produce a short report with:
   • setup summary
   • volatility / pricing context
   • risk / reward
   • bull / base / bear paths
   • best conservative and aggressive alternatives

Rules

• Default to latest available market context unless the user explicitly asks for historical-only or prior-close analysis.
• Label data freshness.
• If the user asks for current, right now, or latest, require timestamped intraday underlying and chain data before quoting levels.
• Always show an as_of timestamp with timezone for underlying price and option chain snapshot.
• Never blend delayed underlying quotes with live chain screenshots without stating the timing mismatch.
• If quote and chain timestamps differ materially, downgrade confidence and state which one is stale.
• Do not claim Greeks, IV rank, or implied move unless a real source supports them.
• Treat wide spreads as real risk.
• If the setup is earnings-driven, call out IV crush risk.
• Keep the output practical and concise.

MCP Integration

If market-data-mcp is available, use it as the default source for chain and underlying data.

• Preferred tools:
  • get_quote
  • get_options_chain
  • get_bars
• Always show:
  • source
  • as_of
  • stale or partial-data flags when present
• Freshness guardrails:
  • quote and chain data should be intraday current
  • stale chains must be labeled and treated as lower confidence
• On provider failure (RATE_LIMITED, UPSTREAM_UNAVAILABLE, STALE_DATA):
  • retry once if retryable
  • continue only with explicitly available data
  • avoid outputting Greeks or implied move if chain quality is insufficient

References

• Read references/options-framework.md before detailed strategy analysis.
• Use assets/options-report-template.md for a full report.