# Covered Call Strategy Engine AI Agent Connect

> Deterministic signaling and backtesting for covered call option strategies.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_FGu4CGefRQjBOHLdnYRyTYZCUjRLOY4X4d3xb5wo/ai-agent-connect
- **Tags:** options, covered-call, backtesting, trading-signals, finance

## Description

This MCP server provides a deterministic engine for executing covered call strategies. It uses `calculate_strategy_signals` to generate precise buy, sell, and hold signals based on historical price action and volatility. Users can evaluate specific trade health using `get_position_metrics` to calculate annualized returns, breakeven points, and downside protection. The engine also includes `evaluate_entry_conditions` to identify optimal entry points when the stock is near its 50-day moving average and volatility is low.

## Tools

### calculate_strategy_signals


### evaluate_entry_conditions


### get_position_metrics


## Prompt Examples

**Prompt:** 
```
Generate trade signals for these stock prices: [150, 152, 151, 153, 155] with strikes [155, 160] and premiums [2, 5], 30 days to expiration, 5% target return, and 10% stop loss.
```

**Response:** 
```
BUY stock at 150.00, SELL call at 155.00 strike for 2.00 premium. Max profit: 7.00, Breakeven: 148.00.
```

**Prompt:** 
```
What is the annualized return for a stock bought at 100, a strike of 105, and a premium of 3 received for a 45-day contract?
```

**Response:** 
```
The annualized return is 24.33%.
```

**Prompt:** 
```
Is it a good time to enter a trade if the price is 100, the 50-day MA is 101, volatility is 12, and the threshold is 15?
```

**Response:** 
```
Yes, the entry conditions are met because the price is near the moving average and volatility is below the threshold.
```

## Frequently Asked Questions

**How are trade signals generated?**
Signals are generated via `calculate_strategy_signals`, which analyzes stock prices, strike prices, and premiums to determine entry, exit, and roll instructions.

**Can I calculate the risk of a specific trade?**
Yes, use `get_position_metrics` to find the breakeven price, max profit, and downside protection for any covered call position.

**What determines an ideal entry point?**
The `evaluate_entry_conditions` tool checks if the current price is near the 50-day moving average and if volatility is below the specified threshold.