strategy-selector

Options Strategy Selector

Given a user's market view, return a ranked list of candidate strategies with rationale, then hand off to options-payoff to visualize.

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Step 1: Extract User View

Probe for these dimensions (ask follow-ups for any that are missing):

Dimension	Values
Direction	strongly bullish / mildly bullish / neutral / mildly bearish / strongly bearish
Volatility view	IV will rise / IV will fall / IV stays flat
Time horizon	days / weeks / months
Capital	rough $ size of position
Max loss tolerance	$ cap, or "uncapped OK"
Skill/experience	beginner / intermediate / advanced

Refuse to recommend if the user can't articulate at least direction and time horizon — that's not "missing input", it's "no view".

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Step 2: Map View to Strategy Grid

Direction × Vol View	IV will rise	IV will fall	IV flat
Strongly bullish	Long call	Call debit spread, Short put	Call debit spread
Mildly bullish	Call debit spread	Bull put credit spread, Covered call	Bull put credit spread
Neutral	Long straddle / strangle	Iron condor, Short straddle (advanced)	Iron butterfly, Calendar
Mildly bearish	Put debit spread	Bear call credit spread	Bear call credit spread
Strongly bearish	Long put	Put debit spread, Short call	Put debit spread

Capped-loss preference → always pick the debit-spread / credit-spread variant, not the naked leg.

Uncapped-loss OK + small account → reject. Position sizing fails on a single bad day.

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Step 3: Apply Filters

Cross out candidates that violate the user's constraints:

• Strict $ cap on loss → eliminate naked shorts (naked put, naked call, short straddle/strangle, ratio spreads).
• Beginner: stick to debit spreads, covered calls, cash-secured puts. No calendars, no ratios, no naked.
• 0DTE preference: only suggest spreads with daily expiries available on the underlying. SPX/SPY have 0DTE; most names don't.
• Earnings catalyst within horizon: prefer long-vol structures (straddle/strangle) since IV crush after earnings will hurt short-vol ones unless you specifically want to SELL the earnings vol pump.

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Step 4: Rank Top 3

For each candidate, surface:

• Why this matches the view (1 sentence)
• Approx max profit / max loss at user's capital
• Greeks profile (long/short on each of Δ, Γ, ν, Θ)
• Best- and worst-case scenarios

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Step 5: Hand Off to options-payoff

Pick the top-1 candidate, propose strikes anchored to current spot, then call options-payoff to visualize the payoff curve. If the user wants to see alternatives, render one chart per finalist.

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Step 6: Respond to User

Present as a comparison table, then ONE strong recommendation with the rationale and a note on the failure mode (what kills this trade). End with a question: "Want me to show the payoff for [top pick] with strikes set at [proposed K1, K2]?"

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What This Skill Won't Do

• Predict direction. The user has to bring the thesis.
• Predict vol. Pair with vol-term-structure / iv-surface if the user wants a vol-regime read.
• Tell the user whether to take the trade. Final go/no-go is theirs.