Options Strategy Advisor

**Judgement:** Strong analytical and educational options tool with broad strategy support and solid quantitative underpinnings, well-suited for theory, scenario analysis, and understanding risk profiles, but not a substitute for broker-grade, real-time trading tools. **Key Strengths** - Covers most common retail options strategies (income, hedging, directional, volatility, range-bound, and some advanced spreads). - Implements Black–Scholes pricing and full Greeks for both single legs and net positions. - Performs expiration P/L simulations and generates ASCII payoff diagrams that make risk/reward visually clear. - Integrates historical data (prices, HV, dividends, earnings dates) via FMP API and supports user-supplied IV and risk-free rate overrides. - Provides strategy-specific commentary, including earnings plays and position sizing heuristics. **Risks & Limitations** - Uses theoretical, primarily European-style pricing; may diverge from real market quotes, especially for American options, illiquid contracts, or complex early-exercise scenarios. - Depends on third-party data (FMP and earnings calendar); failures or stale data can degrade accuracy without always being obvious to the user. - Risk metrics and “probability” estimates are simplified and scenario-based; they should not be treated as precise probabilities of profit. - Offers trading-oriented guidance (e.g., when to use or avoid a strategy, stop-loss suggestions) that could be over-relied on as financial advice if not clearly framed as educational. **Recommended Scenarios** - Helping users understand how specific options strategies behave across price ranges, time, and volatility changes. - Performing what-if analysis and payoff visualization before a user uses their broker’s platform to place trades. - Educational walkthroughs of Greeks and risk exposures for multi-leg positions. - Evaluating whether pre-earnings long-vol vs. short-vol structures conceptually align with a user’s expectations of move size and IV changes. - Teaching basic risk management concepts like max loss, max profit, breakevens, and contract-based position sizing limits.