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derivatives_option-chain-analysis

Read-onlyIdempotent

Calculate max pain, put-call ratio, and skew metrics from an options chain to identify market sentiment and implied volatility smile.

Instructions

Option chain analytics: skew, max pain, put-call ratios.

Use when analyzing an options chain for skew, max pain, and put-call ratios. Provide arrays of strikes, calls, puts, and open interest. Returns: max pain strike, put-call ratio, skew metrics, and implied volatility smile data.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
TNoTime to expiration in years
rNoRisk-free interest rate
spotYesCurrent spot price of the underlying
chainYesArray of option chain entries
Behavior4/5

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

Annotations already declare readOnlyHint=true, destructiveHint=false, and idempotentHint=true. The description adds context on input requirements (arrays of strikes, calls, puts, open interest) and outputs, complementing annotations without contradiction.

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

Conciseness5/5

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

Three concise, front-loaded sentences cover purpose, usage, and data expectations without redundancy. Every sentence adds value.

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

Completeness4/5

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

Given no output schema, the description lists all return values. It explains input structure adequately. Minor gaps: output format (e.g., skew metrics structure) not specified, but overall sufficient for agent invocation.

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

Parameters3/5

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

Schema coverage is 100%, so parameters are well-documented. The description summarizes inputs as 'strikes, calls, puts, and open interest' but adds no new semantic depth beyond the schema.

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?

The description clearly states the tool analyzes option chains for skew, max pain, and put-call ratios, listing specific outputs. It distinguishes from sibling tools like 'options_implied-vol' by offering a comprehensive analytics suite.

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?

Includes explicit direction: 'Use when analyzing an options chain for skew, max pain, and put-call ratios.' It provides clear context but does not explicitly exclude other uses or name alternatives, leaving room for improvement.

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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