IB Analytics MCP Server

--- description: Detailed options strategy analysis with Greeks, IV metrics, and specific strategy recommendations allowed-tools: Task argument-hint: symbol --- Generate detailed options trading strategy for a specific stock based on IV environment, Greeks analysis, and Max Pain calculations. ## Task Delegate to the **market-analyst** subagent to provide professional options strategy analysis and recommendations. ### Command Usage ```bash /options-strategy AAPL /options-strategy SPY /options-strategy VOO ``` ### Analysis Components The **market-analyst** subagent will analyze: **1. IV Environment Assessment** - Current implied volatility - IV Rank (position in 52-week range) - IV Percentile (historical comparison) - Recommendation: Buy vs Sell premium strategies **2. Options Greeks Analysis** - Delta (directional exposure) - Gamma (delta sensitivity) - Theta (time decay) - Vega (IV sensitivity) - Rho (interest rate sensitivity) - Risk assessment based on Greeks **3. Max Pain Analysis** - Max Pain strike price - Current price vs Max Pain - Expected price movement by expiration - Expiration day expectations **4. Options Chain Review** - Liquidity analysis (bid/ask spreads) - Open interest distribution - Volume patterns - Strike selection recommendations **5. Strategy Recommendations** - 2-3 specific options strategies - Exact strikes and expirations - Entry costs and max profit/loss - Probability of profit - Risk/reward ratios - Best strategy selection with rationale ### Delegation Instructions ``` Use the market-analyst subagent to analyze options strategy for $ARGUMENTS: Please provide comprehensive options strategy analysis including: 1. Market Sentiment: - Analyze composite sentiment (news + options + technical) - Use `analyze_market_sentiment` with sources="composite" - Identify key sentiment themes and risk factors 2. IV Environment: - Calculate IV Rank and IV Percentile - Determine if we should buy or sell premium - Recommend strategy types based on IV 3. Greeks Analysis: - Calculate Greeks for ATM options - Assess risk from each Greek - Time decay and IV sensitivity 3. Max Pain Analysis: - Calculate Max Pain strike - Interpret price pressure by expiration - Factor into strategy selection 4. Options Chain: - Review liquidity and spreads - Identify optimal strikes - Check open interest patterns 5. Strategy Recommendations: - Provide 2-3 specific strategies - Include exact strikes, expirations, costs - Calculate max profit, max loss, breakeven - Estimate probability of profit - Compare risk/reward for each strategy - Recommend best strategy with rationale 6. Execution Plan: - Entry timing and orders - Position sizing guidelines - Exit criteria and management - Risk management rules Format as professional options strategy report with specific actionable recommendations. ``` ### Expected Output Format ``` === OPTIONS STRATEGY ANALYSIS: [SYMBOL] === Generated: [DATE TIME] Current Stock Price: $XXX.XX ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 📊 IV ENVIRONMENT ASSESSMENT ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Current Implied Volatility: XX.XX% IV Rank: XX.XX Position in 52-week range: [HIGH/MEDIUM/LOW] 52-Week High: XX.XX% 52-Week Low: XX.XX% Current vs Mean: [above/below] by X.X% IV Percentile: XX.XX Percentage of days IV was lower: XX.XX% Interpretation: [Description] Strategy Environment: [PREMIUM SELLING / PREMIUM BUYING] Recommended Strategy Types: [HIGH IV Environment]: ✅ Covered Calls ✅ Cash-Secured Puts ✅ Credit Spreads ✅ Iron Condors ✅ Short Strangles [LOW IV Environment]: ✅ Long Calls/Puts ✅ Debit Spreads ✅ Calendar Spreads ✅ Diagonal Spreads ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ ⚡ GREEKS ANALYSIS ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ ATM Strike: $XXX.XX Expiration: [DATE] (XX DTE - Days To Expiration) Call Greeks (ATM): Delta: +X.XX (XX% probability of expiring ITM) Gamma: +X.XXXX (delta change per $1 move) Theta: -$X.XX/day ($XX.XX over life of option) Vega: +$X.XX per 1% IV change Rho: +$X.XX per 1% rate change Put Greeks (ATM): Delta: -X.XX (XX% probability of expiring ITM) Gamma: +X.XXXX Theta: -$X.XX/day ($XX.XX over life of option) Vega: +$X.XX per 1% IV change Rho: -$X.XX per 1% rate change Risk Assessment: Time Decay: [HIGH/MODERATE/LOW] - Theta burn of $XX.XX total over XX days - Accelerates in final 30 days IV Risk: [HIGH/MODERATE/LOW] - Vega exposure: $X.XX per 1% IV change - IV crush risk: [if earnings/event pending] Directional Risk: [HIGH/MODERATE/LOW] - Delta: XX% of stock move - Break-even move: ±$X.XX (±X.X%) ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 🎯 MAX PAIN ANALYSIS ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Expiration: [DATE] (XX days away) Max Pain Strike: $XXX.XX Current Price: $XXX.XX Distance: $XX.XX ([above/below] Max Pain) Percentage: XX.X% Expected Price Movement: Based on ATM Straddle: $XX.XX (±XX.X%) Expected Range: $XXX.XX - $XXX.XX Interpretation: [BULLISH]: Price below Max Pain suggests upward pressure [BEARISH]: Price above Max Pain suggests downward pressure [NEUTRAL]: Price near Max Pain suggests sideways movement Trading Implications: - [How Max Pain affects strategy selection] - [Timing considerations for expiration] - [Adjustment plans if approaching Max Pain] ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 💰 RECOMMENDED STRATEGIES ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ ### Strategy 1: [STRATEGY NAME] Setup: [Exact option positions with strikes and expirations] Example: • BUY 1 XXX Call @ $XXX strike, [EXP DATE] • SELL 1 XXX Call @ $XXX strike, [EXP DATE] Cost & Returns: Net Debit/Credit: $XXX.XX Max Profit: $XXX.XX (XXX% return) Max Loss: $XXX.XX Breakeven: $XXX.XX Probability Analysis: Prob of Profit: XX% Prob of Max Profit: XX% Prob of Max Loss: XX% Risk/Reward: 1:X.X Greeks (Position): Net Delta: ±X.XX Net Theta: ±$X.XX/day Net Vega: ±$X.XX When to Use: [Market conditions where this strategy excels] Profit Zones: Max Profit: [Price range] Profit: [Price range] Breakeven: $XXX.XX Loss: [Price range] Management Rules: - Take profits if XX% gain reached - Roll if underlying moves [direction] - Exit if [stop loss condition] - Adjustment: [if needed] ### Strategy 2: [STRATEGY NAME] [Same format as Strategy 1] ### Strategy 3: [STRATEGY NAME] [Same format as Strategy 1] ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 🏆 TOP RECOMMENDATION ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Selected Strategy: [STRATEGY NAME] Confidence Level: [HIGH/MEDIUM/LOW] (X/10) Why This Strategy: [Detailed rationale combining IV environment, Greeks, Max Pain, and market outlook] Specific Action Plan: 1. Entry Execution: [Exact orders to place] - [Order type, strikes, expiration] - [Limit prices or market orders] - [Position sizing: $XXX or X contracts] 2. Position Management: - Monitor daily: [Key metrics to watch] - Adjust if: [Specific conditions] - Take profits at: [Price/profit targets] - Exit if: [Stop loss conditions] 3. Risk Management: - Maximum capital at risk: $XXX (X% of portfolio) - Position size: X contracts (or X% of stock position) - Stop loss: [Specific price or % loss] - Time stop: Exit by [DATE] if no movement 4. Exit Strategy: Success Exit: - Target 1 (50%): [Condition] - Target 2 (50%): [Condition] Loss Mitigation: - Stop loss trigger: [Condition] - Roll strategy: [If applicable] - Accept loss and exit: [Max loss threshold] Expected Outcomes: • Best Case: +$XXX (XXX% return) if [condition] • Base Case: +$XXX (XX% return) if [condition] • Worst Case: -$XXX (XX% loss) if [condition] Probability-Weighted Return: +$XXX (XX%) ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 📋 PRE-TRADE CHECKLIST ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Before Executing: ☐ Confirm current IV environment hasn't changed ☐ Check for upcoming earnings or events ☐ Verify sufficient liquidity (tight bid/ask spreads) ☐ Confirm position sizing within risk limits ☐ Set up alerts for management triggers ☐ Document entry prices and Greeks ☐ Review tax implications if applicable ☐ Confirm account approval for strategy type During Trade: ☐ Use limit orders (avoid market orders) ☐ Enter one leg at a time if spread ☐ Verify fills before proceeding ☐ Set up closing orders immediately ☐ Document actual entry prices After Entry: ☐ Set calendar reminders for management ☐ Monitor Greeks daily ☐ Track P&L relative to max profit/loss ☐ Adjust as conditions change ☐ Follow predefined exit plan ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ ⚠️ IMPORTANT DISCLAIMERS ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Options Trading Risks: - Options can expire worthless (total loss of premium) - Time decay (theta) works against long options - IV crush after earnings can devastate long premium - Selling options can have unlimited risk (if naked) - High leverage amplifies both gains and losses - Complex strategies require active management Required Knowledge: - Understand Greeks and how they affect positions - Know difference between spreads, straddles, strangles - Be familiar with assignment and exercise risks - Understand early assignment risk for American options - Know when to take profits vs. hold to expiration Risk Management Is Essential: - Never risk more than you can afford to lose - Use proper position sizing (typically 1-2% risk per trade) - Set stop losses and follow them - Don't trade options in IRA without understanding restrictions - Consult financial advisor if uncertain This analysis is for educational purposes only. Not financial advice. Trade at your own risk. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 📚 ADDITIONAL RESOURCES ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ For deeper symbol analysis: /analyze-symbol [SYMBOL] For portfolio-level strategy: /investment-strategy For tax implications: /tax-report For comprehensive portfolio review: /optimize-portfolio ``` ### Use Cases **Before Opening Options Position**: ```bash /options-strategy AAPL ``` Get complete analysis to select optimal strategy. **Evaluating Covered Call Opportunities**: ```bash /options-strategy VOO ``` Analyze if IV environment favors covered calls. **Finding Cash-Secured Put Strikes**: ```bash /options-strategy MSFT ``` Identify optimal strike for put selling strategy. **Options Income Strategy**: ```bash /options-strategy SPY ``` Analyze weekly options for income generation. ### Error Handling **If symbol not provided**: ``` Error: Please provide a stock symbol. Usage: /options-strategy SYMBOL Examples: /options-strategy AAPL /options-strategy SPY ``` **If no options available**: ``` Error: No options data available for symbol "$ARGUMENTS". This stock may not have listed options. ``` ### Integration This command focuses on options strategies. Combine with: - `/analyze-symbol SYMBOL` - For underlying symbol technical analysis - `/investment-strategy` - For portfolio-level context - `/optimize-portfolio` - For income generation opportunities across portfolio The **market-analyst** subagent will provide professional options strategy analysis using Greeks, IV metrics, and Max Pain calculations.