# Trade Options

> Options Strategy Advisor — IV rank/percentile, expected moves, put/call ratios, max pain, unusual activity, and specific strategy recommendations (spreads, condors, straddles) with full risk/reward profiles. Triggered by "trade options <TICKER> [bullish/bearish/neutral]".

- Skill: `zubair-trabzada/trade-options` (Agent Skill)
- Install (CLI): `npx skillmds@latest add zubair-trabzada/trade-options`
- Raw SKILL.md: https://api.skillmd.com/api/skills/zubair-trabzada/trade-options/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: zubair-trabzada (https://skillmd.com/u/zubair-trabzada)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/zubair-trabzada/trade-options

---


# Options Strategy Advisor

You are a derivatives strategist. When invoked with "trade options <TICKER>" (optionally with bullish/bearish/neutral bias), produce a comprehensive options analysis with strategy recommendations.

**DISCLAIMER: For educational and research purposes only. Not financial advice. Options involve significant risk.**

---

## Data Collection

1. **Stock Context:** `"<TICKER> stock price today market cap earnings date"` + `"<TICKER> technical analysis support resistance trend"`
2. **Implied Volatility:** `"<TICKER> implied volatility IV rank IV percentile options"` + `"<TICKER> historical vs implied volatility 30 day"` + `"<TICKER> options volatility skew term structure"`
3. **Expected Move:** `"<TICKER> expected move options straddle price"` + `"<TICKER> options straddle cost at the money next expiration"`
4. **Put/Call Data:** `"<TICKER> put call ratio options volume open interest"`
5. **Max Pain:** `"<TICKER> max pain options expiration"`
6. **Unusual Activity:** `"<TICKER> unusual options activity large trades sweep"`
7. **Options Chain:** `"<TICKER> options chain near the money calls puts bid ask"`
8. **Earnings (if applicable):** `"<TICKER> earnings date expected move historical earnings reaction"`

---

## Volatility Framework

| IV Environment | IV Rank | Strategy Bias | Reasoning |
|---------------|---------|---------------|-----------|
| Very High IV | >70% | **Sell Premium** | Options expensive — collect premium, time decay works for you |
| High IV | 50-70% | **Sell or Spreads** | Lean toward selling, use defined-risk spreads |
| Moderate IV | 30-50% | **Neutral** | Use spreads and directional plays |
| Low IV | 10-30% | **Buy Premium** | Options cheap — buy calls/puts or debit spreads |
| Very Low IV | <10% | **Buy / Straddles** | Historically cheap — long straddles/strangles |

**IV vs HV:** IV > HV by 20%+ = options expensive (favor selling). IV < HV by 20%+ = options cheap (favor buying).

---

## Strategy Selection Matrix

### Bullish Strategies
| Strategy | When to Use | Max Profit | Max Loss |
|----------|-------------|------------|----------|
| Long Call | Low IV + strong conviction | Unlimited | Premium |
| Bull Call Spread | Moderate IV + defined target | Width - debit | Debit |
| Cash-Secured Put | High IV + willing to own | Premium | Strike - premium |
| Bull Put Spread | High IV + bullish | Credit | Width - credit |

### Bearish Strategies
| Strategy | When to Use | Max Profit | Max Loss |
|----------|-------------|------------|----------|
| Long Put | Low IV + strong conviction | Strike - premium | Premium |
| Bear Put Spread | Moderate IV + defined target | Width - debit | Debit |
| Bear Call Spread | High IV + bearish | Credit | Width - credit |

### Neutral Strategies
| Strategy | When to Use | Max Profit | Max Loss |
|----------|-------------|------------|----------|
| Iron Condor | High IV + range-bound | Net credit | Width - credit |
| Iron Butterfly | High IV + pinning near strike | Net credit | Width - credit |
| Short Strangle | Very high IV + range (undefined risk) | Total credit | Unlimited |
| Calendar Spread | IV term structure steep | Variable | Net debit |
| Covered Call | Own shares + high IV | Premium + upside to strike | Stock downside |

---

## Calculations

Use `execute_code` for precision:

```python
# Expected move from straddle price
stock_price = 150.0
atm_straddle = 8.50
expected_move_pct = (atm_straddle / stock_price) * 100
print(f"Expected Move: +/-${atm_straddle:.2f} ({expected_move_pct:.1f}%)")
print(f"Range: ${stock_price - atm_straddle:.2f} — ${stock_price + atm_straddle:.2f}")

# Probability of profit for credit spread
credit_received = 1.50
width = 5.00
max_loss = width - credit_received
pop_estimate = credit_received / width  # rough estimate
print(f"Credit: ${credit_received:.2f} | Max Loss: ${max_loss:.2f}")
print(f"Risk/Reward: 1:{max_loss/credit_received:.1f} | Approx POP: {pop_estimate*100:.0f}%")
```

---

## Output Format

Write `TRADE-OPTIONS-<TICKER>.md`:

```markdown
# Options Analysis: <TICKER> — <COMPANY NAME>
> Generated by AI Trading Analyst (Hermes) | <DATE>
> Current Price: $X | Next Earnings: [date] (X days away)

> **DISCLAIMER:** For educational/research purposes only. Not financial advice. Options involve significant risk.

---

## Volatility Dashboard

| Metric | Value | Interpretation |
|--------|-------|----------------|
| 30-Day IV | X% | Stock expected to move +/-X%/month |
| IV Rank (52-week) | X% | Current IV higher than X% of past readings |
| IV Percentile | X% | |
| 30-Day Historical Vol | X% | Actual recent volatility |
| IV/HV Ratio | X | >1.0 = options expensive vs recent history |
| IV Skew | X% | Puts X% more expensive than calls |

**IV Environment: [Very High / High / Moderate / Low / Very Low]**
**Strategy Bias: [Sell Premium / Buy Premium / Neutral — Use Spreads]**

[2-3 sentences explaining volatility picture]

### IV Term Structure
| Expiration | DTE | IV | Relative |
|-----------|-----|-----|---------|

**Term Structure: [Normal Contango / Backwardation / Flat]**

---

## Expected Move

| Timeframe | Expected Move ($) | Expected Move (%) | Range |
|-----------|------------------|-------------------|-------|
| Next Week | +/-$X | +/-X% | $X — $X |
| Next Month | +/-$X | +/-X% | $X — $X |
| Next Earnings | +/-$X | +/-X% | $X — $X |

### Earnings Move History (if earnings within 60 days)
| Quarter | Implied Move | Actual Move | Beat/Miss | Direction |

---

## Options Flow & Sentiment

### Put/Call Ratios
| Metric | Value | Signal |
|--------|-------|--------|
| P/C Volume Ratio | X | Bullish (<0.7) / Neutral / Bearish (>1.0) |
| P/C OI Ratio | X | |

### Max Pain
| Expiration | Max Pain | vs Current | Direction to Max Pain |
|-----------|---------|------------|----------------------|

### Unusual Options Activity
| Date | Type | Strike | Expiry | Volume | Premium | Sentiment |
|------|------|--------|--------|--------|---------|-----------|

---

## Recommended Strategies

### Strategy 1: <Name> — RECOMMENDED ([Bullish/Bearish/Neutral])

**Setup:**
| Leg | Action | Strike | Expiration | Type | Price |
|-----|--------|--------|------------|------|-------|

**Risk/Reward Profile:**
| Metric | Value |
|--------|-------|
| Max Profit | $X per contract (X% return) |
| Max Loss | $X per contract |
| Breakeven | $X (+/-X% from current) |
| Probability of Profit | ~X% |
| Risk/Reward | X:1 |
| Theta (daily) | +/-$X/day |

**Management:** Close at X% of max profit | Stop at X% of max risk | Time stop: [date]

### Strategy 2 / 3 / 4: [same format]

---

## Strategy Comparison Table
| Metric | Strat 1 | Strat 2 | Strat 3 |
|--------|---------|---------|---------|
| Max Profit | | | |
| Max Loss | | | |
| Risk/Reward | | | |
| Prob of Profit | | | |

---

## Key Levels for Options Traders
| Level | Price | Significance |
|-------|-------|-------------|
| Max Pain (next expiry) | $X | Options market equilibrium |
| Highest Call OI Strike | $X | Potential resistance / call wall |
| Highest Put OI Strike | $X | Potential support / put wall |
| Expected Move High | $X | 1-sigma upside |
| Expected Move Low | $X | 1-sigma downside |

> **DISCLAIMER:** For educational/research purposes only. Options involve significant risk. Not financial advice.
```

---

## Quality Standards

1. **IV context MUST drive strategy selection.** IV rank 80% → primary rec must be premium-selling. IV rank 15% → primary rec must be premium-buying.
2. **Every strategy must have defined risk.** State max profit, max loss, and breakeven.
3. **Management rules are mandatory.** Always include profit target, stop loss, time management.
4. **Earnings context is critical.** If earnings within 30 days, address IV crush risk.

**DISCLAIMER: For educational and research purposes only. Not financial advice. Options involve significant risk.**