options-analysis

options-analysis

Purpose

This skill analyzes financial options using quantitative models like Black-Scholes for pricing and risk evaluation. It processes inputs such as stock price, strike price, time to expiration, volatility, and risk-free rate to output option prices and Greeks (e.g., delta, gamma).

When to Use

Use this skill for real-time financial analysis in trading scenarios, such as pricing European call/put options, evaluating portfolio risks, or backtesting strategies. Apply it when you have access to market data and need quantitative insights, like in algorithmic trading or risk management dashboards.

Key Capabilities

• Price options using Black-Scholes or binomial models.
• Compute Greeks (e.g., delta, gamma, theta, vega) for sensitivity analysis.
• Evaluate risk metrics like implied volatility and probability of exercise.
• Support batch processing for multiple options in a single call.
• Handle various asset types, including stocks and indices, with error bounds for invalid inputs.

Usage Patterns

Invoke this skill via CLI for quick tests or integrate it into Python code for automated workflows. Always provide required parameters like stock price and volatility. Use JSON config files for complex inputs to avoid CLI length limits. For API calls, set the authentication header first using $OPTIONS_API_KEY. Example pattern: Load data from a file, run analysis, and parse results into a dataframe for further processing.