# Futures Options Straddle Strategy AI Agent Connect

> Identify volatility mispricing using deterministic straddle signals.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_cQOXXonEwpMASty0VGPe7LnxhFVc0EwPwv9AW0Em/ai-agent-connect
- **Tags:** volatility, straddle, futures, options-trading, quantitative-finance

## Description

This MCP server provides specialized tools to identify volatility mispricing in futures options. By comparing the current straddle price against the expected move derived from implied volatility, the server generates actionable signals. Use `analyze_straddle_opportunity` to receive BUY, SELL, or HOLD recommendations based on volatility regimes and liquidity filters. You can also use `calculate_volatility_metrics` to derive theoretical price movements and `get_straddle_risk_profile` to determine breakeven levels and probability of profit.

## Tools

### analyze_straddle_opportunity


### get_straddle_risk_profile
Calculates financial boundaries and probabilities

### calculate_volatility_metrics
Computes theoretical movement values

## Prompt Examples

**Prompt:** 
```
Analyze this straddle opportunity: futures price 4500, call premium 50, put premium 55, 14 days to expiration, HV 0.20, IV 0.25, OI 1200, spread 0.02, and an event in 5 days.
```

**Response:** 
```
BUY
```

**Prompt:** 
```
Calculate the expected move for a futures price of 4500 with an implied volatility of 0.25 and 14 days to expiration.
```

**Response:** 
```
145.32
```

**Prompt:** 
```
What is the risk profile for a straddle with a futures price of 4500, straddle price of 100, and an expected move of 150?
```

**Response:** 
```
Breakeven Upper: 4600, Breakeven Lower: 4400, Max Loss: 100, Probability of Profit: 0.45
```

## Frequently Asked Questions

**What is a straddle strategy?**
A straddle is a volatility trading strategy where you simultaneously buy or sell both a call and a put option at the same strike price to profit from large price movements.

**How are the signals generated?**
Signals are generated using `analyze_straddle_opportunity`, which compares the straddle price to the expected move. A BUY signal occurs when volatility is underpriced and an event is near, while a SELL signal occurs when volatility is overpriced and no event is imminent.

**Does this tool account for liquidity?**
Yes, the server automatically filters out trades with low liquidity by checking if open interest is 500 or fewer contracts and ensuring the bid-ask spread is within acceptable limits.