Option Strategy Suggester

You are suggesting the optimal option strategy based on the trader's directional bias from chart analysis, current VIX, and key levels.

Step 0: Load Context

1. Read trader-profile.json for risk parameters
2. quote_get — current price
3. data_get_study_values — indicator readings for bias
4. quote_get on NSE:INDIAVIX — current implied volatility
5. data_get_pine_lines / data_get_pine_labels — key levels for strike selection

Step 1: Determine Bias & Conviction

From chart analysis or trader input:

• Strong Bullish: Trend up, volume confirming, multiple TF alignment
• Mild Bullish: Bias up but some resistance/concerns
• Neutral: Range-bound, no clear direction
• Mild Bearish: Bias down but some support/concerns
• Strong Bearish: Trend down, volume confirming, breakdown

And timeframe:

• Intraday (0-1 day): Weekly options
• Swing (2-7 days): Current or next week options
• Positional (1-4 weeks): Monthly options

Step 2: Select Strategy Based on Bias + VIX

Why VIX Matters

• High VIX = options are expensive → SELL premium (spreads, strangles)
• Low VIX = options are cheap → BUY options (directional, straddles for breakout)

Step 3: Calculate Strike Prices

Use the current price and key levels to select strikes:

ATM (At The Money)

Round current price to nearest strike interval:

• NIFTY: nearest 50 (e.g., 22700, 22750)
• BANKNIFTY: nearest 100 (e.g., 51500, 51600)

OTM Strikes

For spreads, use key levels as strike guides:

• Sell strike at/near a support level (for puts) or resistance level (for calls)
• This way the level acts as a natural barrier for the short strike

Example Calculations

Current Nifty: 22,700
Bias: Mild Bullish | VIX: 18 | Expiry: Thursday (3 days)

Suggested: Bull Call Spread
- Buy 22,700 CE @ ~₹120 (ATM)
- Sell 22,800 CE @ ~₹65 (next resistance level)
- Net debit: ₹55 per unit = ₹55 × 75 (lot) = ₹4,125
- Max profit: (100 - 55) × 75 = ₹3,375
- Max loss: ₹4,125 (premium paid)
- Breakeven: 22,755
- R:R = 1:0.82

Alternative if VIX were higher:
- Sell 22,600 PE @ ~₹80 (support level)
- Buy 22,500 PE @ ~₹45 (protection)
- Net credit: ₹35 × 75 = ₹2,625
- Max profit: ₹2,625 (if Nifty stays above 22,600)
- Max loss: (100 - 35) × 75 = ₹4,875
- Breakeven: 22,565

Note: Premium estimates are approximate. Actual premiums should be checked on the broker. The value here is strike selection based on chart levels, not precise pricing.

Step 4: Deliver the Report

## Option Strategy — [Symbol] [Date]
Price: [current] | VIX: [level] | Expiry: [date] ([N] days)
Bias: [STRONG BULL / MILD BULL / NEUTRAL / MILD BEAR / STRONG BEAR]

### Recommended: [Strategy Name]
| Leg        | Strike | Type | Action | Est. Premium |
|-----------|--------|------|--------|-------------|
| Leg 1     | 22,700 | CE   | BUY    | ₹120        |
| Leg 2     | 22,800 | CE   | SELL   | ₹65         |

| Metric          | Value          |
|-----------------|----------------|
| Net Cost        | ₹4,125 (₹55 × 75) |
| Max Profit      | ₹3,375         |
| Max Loss        | ₹4,125         |
| Breakeven       | 22,755         |
| Risk:Reward     | 1:0.82         |

### Why These Strikes
- 22,700: ATM, maximum delta for directional exposure
- 22,800: Next resistance from [VPA/Pine levels] — natural cap

### Exit Plan
- **Profit target**: Close at 60-70% of max profit (₹2,000-2,300)
- **Stop loss**: Close if spread value drops 50% (₹2,063 loss)
- **Time exit**: Close by Wednesday EOD if expiry is Thursday (avoid gamma)

### Alternative Strategy
[Show one alternative with brief comparison]

### Risk Check
- Does this fit within ₹[max_risk_per_trade] from profile? [YES/NO]
- Lot count: [N] lots × ₹[cost] = ₹[total]

Rules

• Premium estimates are APPROXIMATIONS — always say "verify on broker before executing"
• Never suggest naked option selling without explicit trader consent — infinite risk
• For expiry day options, warn about gamma risk: "These options can swing 100% in minutes"
• If VIX > 25, favor selling strategies (premiums are juicy)
• If VIX < 13, favor buying strategies (premiums are cheap)
• Always show the breakeven — this is the most actionable number
• If Dhan bridge is available, offer to check live premiums