# Futures Options Volatility Risk Premium Strategy AI Agent Connect

> Analyze volatility risk premium (VRP) to identify buy/sell signals for futures options.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_xvGXHUiu4KGOuAkL0FNDgfUIoVvTW4YLzPcJEqkK/ai-agent-connect
- **Tags:** volatility, futures, options, vrp, quantitative

## Description

This MCP server provides a deterministic quantitative engine for trading the Volatility Risk Premium (VRP). By comparing Implied Volatility (IV) against Realized Volatility (RV), the server identifies when options are overpriced or underpriced. Use `analyze_volatility_signals` to generate specific buy/sell signals based on VRP percentiles and liquidity filters. You can also use `calculate_risk_metrics` to estimate hedging costs and `get_market_regime_context` to understand the broader volatility environment.

## Tools

### analyze_volatility_signals
Calculates core volatility metrics and generates VRP buy/sell signals

### calculate_risk_metrics
Quantifies expected costs and mean reversion for volatility trades

### get_market_regime_context
Provides high-level context regarding the current volatility environment

## Prompt Examples

**Prompt:** 
```
Analyze the current volatility signals for these futures prices and IV series.
```

**Response:** 
```
The current VRP is 6.5% with a percentile of 85. Since VRP > 5% and percentile > 80, the signal is SELL volatility via a short straddle.
```

**Prompt:** 
```
What is the current market regime and volatility trend?
```

**Response:** 
```
The market is in a high volatility regime with an expanding volatility trend and a wide VRP spread.
```

**Prompt:** 
```
Calculate the risk metrics for a position with a delta of 0.5.
```

**Response:** 
```
The estimated hedging cost is 0.02% and the VRP shows a strong tendency for mean reversion toward 2.5%.
```

## Frequently Asked Questions

**What is the Volatility Risk Premium (VRP)?**
VRP is the spread between implied volatility and realized volatility, representing the premium paid for uncertainty.

**How are signals generated?**
Signals are generated using `analyze_volatility_signals` which evaluates VRP levels, percentiles, and liquidity constraints like open interest and days to expiry.

**Can I estimate hedging costs?**
Yes, use the `calculate_risk_metrics` tool to estimate the cost of maintaining a delta-neutral position.