# Futures Options Strangle Strategy AI Agent Connect

> A deterministic decision engine for executing short strangle strategies on futures.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_L2mpBUTFpKkpUKPQHPdJfbcViY8Kbz80cqCTJCAE/ai-agent-connect
- **Tags:** futures, options, strangle, volatility, trading-signals

## Description

This MCP server provides a specialized decision engine for traders executing short strangle strategies on futures. It evaluates market data to identify optimal entry points by comparing total strangle premium against the expected market move and volatility regimes. Users can use `analyze_strangle_signals` to scan price history for BUY or SELL signals, `get_strategy_economics` to calculate risk/reward profiles like breakeven and max profit, and `validate_liquidity_conditions` to ensure trades meet strict liquidity and gamma risk requirements.

## Tools

### validate_liquidity_conditions
Verifies if a specific option setup meets the necessary liquidity and risk constraints

### analyze_strangle_signals
Evaluates daily market data to generate specific BUY or SELL signals for a strangle strategy

### get_strategy_economics
Calculates the specific risk/reward profile for a single identified strangle position

## Prompt Examples

**Prompt:** 
```
Analyze this price history for strangle signals: [{"futuresPrice": 4500, "callPremium": 50, "putPremium": 45, "callStrike": 4550, "putStrike": 4450, "openInterest": 600, "bidAskSpreadPercentage": 0.05, "impliedVolatility": 0.25, "ivRank": 75}] with 30 days to expiry.
```

**Response:** 
```
SELL strangle. Futures Price: 4500, Call Strike: 4550, Put Strike: 4450, Call Premium: 50, Put Premium: 45, Strangle Premium: 95, Expected Move: 72.4, Breakeven: 4595 (Upper) and 4405 (Lower).
```

**Prompt:** 
```
Calculate the economics for a position with futures price 4500, call premium 50, put premium 45, call strike 4550, put strike 4450, IV 0.25, and 30 days to expiry.
```

**Response:** 
```
Total Premium: 95, Expected Move: 72.4, Upper Breakeven: 4595, Lower Breakeven: 4405, Max Profit: 95, Max Loss: unlimited.
```

**Prompt:** 
```
Check if this setup is liquid: Open Interest 600, 20 days to expiry, bid-ask spread 4, total premium 95.
```

**Response:** 
```
The setup is liquid, has low gamma risk, and a tight spread.
```

## Frequently Asked Questions

**What is a short strangle strategy?**
A short strangle is a volatility selling strategy where a trader sells both an out-of-the-money call and an out-of-the-money put to collect premium.

**How are signals generated?**
Signals are generated using `analyze_strangle_signals`, which compares the strangle premium to the expected move and checks the IV Rank and liquidity filters.

**What liquidity filters are applied?**
The engine uses `validate_liquidity_conditions` to ensure Open Interest is above 500, days to expiry is at least 14, and the bid-ask spread is within 10% of the premium.