📌Overview

Purpose: The OptionsFlow MCP Server is designed to provide advanced options analysis and strategy evaluation using data sourced from Yahoo Finance, enabling large language models (LLMs) to effectively analyze options chains and calculate associated metrics.

Overview: This framework facilitates comprehensive options analysis, strategy evaluation, and risk management for options trading. It integrates multiple analytical tools for assessing options performance, thus empowering traders with crucial insights about potential strategies and associated risks.

Key Features:

Options Analysis: Offers processing of complete options chain data, including Greeks calculations (delta, gamma, theta, vega, rho), implied volatility analysis, and risk/reward metrics to enhance options trading strategies.
Strategy Analysis: Supports various strategies such as Credit Call Spreads, Put Credit Spreads, Cash Secured Puts, and Covered Calls, along with detailed evaluation of position Greeks and liquidity to help assess strategy viability.
Risk Management: Provides tools for bid-ask spread analysis, volume and open interest validation, position sizing recommendations, and maximum loss calculations, enabling traders to manage and mitigate risks effectively.

OptionsFlow MCP Server

A Model Context Protocol (MCP) server providing advanced options analysis and strategy evaluation through Yahoo Finance. Enables LLMs to analyze options chains, calculate Greeks, and evaluate basic options strategies with comprehensive risk metrics.

Features

Options Analysis

Complete options chain data processing
Greeks calculation (delta, gamma, theta, vega, rho)
Implied volatility analysis
Probability calculations
Risk/reward metrics

Strategy Analysis

Credit Call Spreads (CCS)
Put Credit Spreads (PCS)
Cash Secured Puts (CSP)
Covered Calls (CC)
Position Greeks evaluation
Liquidity analysis
Risk metrics calculation

Risk Management

Bid-ask spread analysis
Volume and open interest validation
Position sizing recommendations
Maximum loss calculations
Probability of profit estimates

Installation

# Install dependencies
pip install -r requirements.txt

# Clone the repository
git clone https://github.com/twolven/mcp-optionsflow.git
cd mcp-optionsflow

Usage

Add to your Claude configuration:

In your claude-desktop-config.json, add the following to the mcpServers section:

{
    "mcpServers": {
        "optionsflow": {
            "command": "python",
            "args": ["path/to/optionsflow.py"]
        }
    }
}

Replace "path/to/optionsflow.py" with the full path to where you saved the optionsflow.py file.

Available Tools

analyze_basic_strategies

{
    "symbol": str,                    # Required: Stock symbol
    "strategy": str,                  # Required: "ccs", "pcs", "csp", or "cc"
    "expiration_date": str,          # Required: "YYYY-MM-DD"
    "delta_target": float,           # Optional: Target delta for CSP/CC (default: 0.3)
    "width_pct": float              # Optional: Width for spreads (default: 0.05)
}

Strategy Analysis Response Format

{
    "symbol": str,
    "strategy": str,
    "current_price": float,
    "expiration": str,
    "days_to_expiration": int,
    "analysis": {
        # Credit Call Spread / Put Credit Spread
        "strikes": {
            "short_strike": float,
            "long_strike": float
        },
        "metrics": {
            "credit": float,
            "max_loss": float,
            "max_profit": float,
            "probability_of_profit": float,
            "risk_reward_ratio": float
        },
        "greeks": {
            "net_delta": float,
            "net_theta": float,
            "net_gamma": float
        }

        # Cash Secured Put
        "strike": float,
        "metrics": {
            "premium": float,
            "max_loss": float,
            "assigned_cost_basis": float,
            "return_if_otm": float,
            "downside_protection": float
        },
        "greeks": {
            "delta": float,
            "theta": float,
            "gamma": float
        }

        # Covered Call
        "strike": float,
        "metrics": {
            "premium": float,
            "max_profit": float,
            "max_profit_percent": float,
            "upside_cap": float,
            "premium_yield": float
        },
        "greeks": {
            "position_delta": float,
            "theta": float,
            "gamma": float
        }
    }
}

Requirements

Python 3.12+
mcp
yfinance
pandas
numpy
scipy

Limitations

Data sourced from Yahoo Finance with potential delays
Options data availability depends on market hours
Rate limits based on Yahoo Finance API restrictions
Greeks calculations are theoretical and based on Black-Scholes model
Early assignment risk not factored into probability calculations

Contributing

Contributions are welcome! Please feel free to submit a Pull Request.

License

This project is licensed under the MIT License - see the LICENSE file for details.

Author

Todd Wolven - (https://github.com/twolven)

Acknowledgments

Built with the Model Context Protocol (MCP) by Anthropic
Data provided by Yahoo Finance
Developed for use with Anthropic's Claude