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TradingCalc MCP: Options, Forex, Risk Stats, Prediction Markets, On-Chain & Crypto Futures

Straddle and Strangle

workflow.run_straddle_strangle
Read-only

Payoff, P&L, and both breakeven prices for a long or short straddle/strangle (a call + a put on the same Deribit BTC/ETH underlying, both legs the same direction) at a scenario price. A straddle is callStrike === putStrike; any callStrike > putStrike makes it a strangle, same formula either way. Coin-settled like workflow.run_options_payoff: a long position's max loss is the flat total premium paid (between the strikes, both legs worthless); max profit is technically unbounded, dominated by the put leg's payoff as price falls toward zero. Use when user asks about a straddle or strangle, e.g. "what does a BTC straddle pay off if price barely moves?" or "where are my breakevens on this strangle?". Returns: combinedIntrinsicCoin, scenarioPnlCoin, scenarioPnlUsd, upperBreakevenPrice, lowerBreakevenPrice, maxLossCoin/maxProfitCoin (null = unbounded), isStraddle, isProfitable.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
currencyNoUnderlying coin. Default BTC.
positionYes
quantityYesNumber of straddle/strangle units (both legs sized equally)
putStrikeYesPut leg strike, USD. Must be <= callStrike.
callStrikeYesCall leg strike, USD. Equal to putStrike for a straddle, higher for a strangle.
scenarioPriceYesUnderlying price in USD to evaluate the payoff at
putPremiumCoinYesPut leg premium per contract, in the base coin
callPremiumCoinYesCall leg premium per contract, in the base coin (e.g. 0.02 BTC)

Schema Changelog

Changes observed during successful MCP inspections.

  1. Added

TDQS

A4.6/5.0
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already establish a safe read-only, non-destructive profile, and the description adds substantial context beyond them: coin settlement, max loss equals flat total premium paid, max profit dominated by the put leg as price falls, and null-valued max fields meaning unbounded. It also enumerates the returned fields, which is valuable given there is no output schema.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Dense but front-loaded, opening with what is computed and leading into the straddle/strangle distinction. The example phrasings and return-field list are useful, though the single long paragraph is text-heavy and could be broken up; no sentence is truly wasted.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

With no output schema, the description compensates by enumerating return fields (combinedIntrinsicCoin, scenarioPnlCoin/Usd, breakevens, max loss/profit, isStraddle, isProfitable) and explaining the payoff model. For an 8-parameter computation tool, nothing essential is missing.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is already high (88%), so the baseline is 3, but the description adds real meaning: quantity is 'both legs sized equally', putStrike must be <= callStrike, and the callStrike === putStrike rule defines a straddle vs strangle. It adds interpretation of premium semantics ('between the strikes, both legs worthless') beyond the field-level docs.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb+resource: computes payoff, P&L, and both breakevens for a straddle/strangle at a scenario price. It explicitly contrasts itself with sibling workflow.run_options_payoff and defines straddle vs strangle via strike relationship, so an agent can distinguish it without opening the schema.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Gives clear when-to-use context with concrete user-phrasing examples ('what does a BTC straddle pay off if price barely moves?', 'where are my breakevens on this strangle?'). It references the closest sibling (run_options_payoff) as the coin-settlement analogue, but does not state explicit when-not/to-use-instead conditions versus other payoff tools like run_spread_payoff.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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