# Protective Collar Strategy AI Agent Connect

> A deterministic hedging engine for locking in profits and mitigating downside risk using protective collars.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_gprs5VZ3UvLLFLHq0BN6vBi3pd7QSdROobJ8NVke/ai-agent-connect
- **Tags:** hedging, options, stock, risk, collar

## Description

This MCP server provides a precise hedging engine for long stock positions. It uses a protective collar strategy--simultaneously selling an out-of-the-money call and buying an out-of-the-money put--to protect gains and limit losses. The engine uses `analyze_collar_opportunity` to detect when to enter a hedge based on profit targets or upcoming risk events. It then employs `calculate_collar_parameters` to select optimal strikes and `evaluate_collar_performance` to project max profit, max loss, and breakeven. Finally, `get_exit_signal` monitors the position for assignment or expiration.

## Tools

### analyze_collar_opportunity
Evaluates if current market conditions warrant a protective collar

### calculate_collar_parameters
Determines specific strike prices and Greeks for the collar

### evaluate_collar_performance
Calculates financial outcomes of the collar position

### get_exit_signal
Determines if the position should be closed or adjusted

## Prompt Examples

**Prompt:** 
```
Should I hedge my current stock position?
```

**Response:** 
```
Yes, the stock has gained 25% since your entry price, so you should enter a protective collar to lock in profits.
```

**Prompt:** 
```
What are the risk metrics for my collar?
```

**Response:** 
```
Your maximum profit is $5.00 per share, your maximum loss is $3.00 per share, and your breakeven price is $102.00.
```

**Prompt:** 
```
Is it time to exit my hedge?
```

**Response:** 
```
Yes, the current stock price has reached the call strike, so you should exit the position to avoid assignment.
```

## Frequently Asked Questions

**When does the engine trigger a collar entry?**
The engine triggers an entry via `analyze_collar_opportunity` if the stock has gained more than 20% from its entry price or if a critical risk event is detected.

**How are the option strikes selected?**
The `calculate_collar_parameters` tool selects strikes that are 5-10% out-of-the-money with specific delta targets to minimize the net cost of the hedge.

**How can I see the potential profit and loss?**
You can use `evaluate_collar_performance` to calculate the maximum profit, maximum loss, and the breakeven price for your specific collar position.