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xerktech

mcp-financex

by xerktech

calculate_max_pain

Calculate the max pain price for an options expiration to identify the strike price where option holders face maximum loss. Useful for traders anticipating price convergence near expiration.

Instructions

Calculate the max pain price for an options expiration. Max pain is the strike price where option holders (buyers) experience maximum loss, and option writers (sellers) experience maximum profit. Many traders believe prices gravitate toward max pain as expiration approaches.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
symbolYesStock ticker symbol
expirationDateNoExpiration date in YYYY-MM-DD format (optional, defaults to nearest expiration)
Behavior2/5

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

No annotations are provided, and the description lacks behavioral details such as data sources, calculation methods, prerequisites (e.g., need options chain data), or side effects. The description is purely definitional.

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?

The description is concise at three sentences, with the first sentence stating the purpose, the second defining the term, and the third providing context. No wasted words, but it could be more structured with a bulleted list.

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

Completeness2/5

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

Without an output schema, the description fails to explain what the tool returns (e.g., a single number, an object with strike price and total OI). This is a significant gap for a calculation tool.

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?

The input schema covers both parameters with descriptions (schema coverage 100%). The description does not add any new information about parameter semantics beyond what the schema already provides.

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 states the tool calculates the max pain price for an options expiration and defines what max pain is. It clearly distinguishes from sibling tools like calculate_greeks or get_options_chain by its specific focus.

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

Usage Guidelines3/5

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

The description mentions that many traders believe prices gravitate toward max pain as expiration approaches, implying when to use it (near expiration). However, it does not explicitly say when to use this tool versus alternatives like calculate_greeks or get_options_chain, and provides no exclusions.

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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