/options-strategy-advisor

name: options-strategy-advisor
description: >
  Options strategy analysis for Indian F&O markets (NSE). Use when user requests
  options strategy recommendations, P/L analysis, Greeks calculation, risk management,
  or F&O strategy planning for Nifty, Bank Nifty, or stock options.

Options Strategy Advisor — Indian F&O Markets (NSE)

Overview

This skill provides comprehensive options strategy analysis tailored to the Indian Futures & Options market on the National Stock Exchange (NSE). It covers strategy selection, live data retrieval, margin estimation, profit/loss simulation, Greeks analysis, and risk management — all adapted for the specific characteristics of Indian F&O trading.

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Indian F&O Market Characteristics

Exercise Style

• **European-style exercise only.** Options on NSE can only be exercised at expiry,

not before. This simplifies pricing (Black-Scholes applies directly without early-exercise adjustments) and means time value is always fully captured by the seller until expiry.

Expiry Schedule

| Underlying | Expiry Day | Expiry Type | |--------------|-------------|----------------------| | NIFTY | Thursday | Weekly + Monthly | | BANK NIFTY | Wednesday | Weekly + Monthly | | FINNIFTY | Tuesday | Weekly + Monthly | | SENSEX (BSE) | Friday | Weekly + Monthly | | Stock Options | Last Thursday | Monthly only |

• Monthly expiry is the last Thursday of the month (or preceding trading day if

Thursday is a holiday).

• Weekly expiries are available only for index options, not individual stocks.

Lot Sizes

Lot sizes are periodically revised by the exchanges. Always verify current lot sizes using the Groww MCP tool `fno_mcx_contracts_search_tool` before calculating margin or position size. Recent reference values:

• NIFTY: 75 (recently changed — confirm via MCP)
• BANK NIFTY: 15 (recently changed — confirm via MCP)
• FINNIFTY: 25
• Stock options: Varies by stock (check contract specifications)

Margin Requirements

SEBI mandates the following margin components for F&O: 1. **SPAN Margin** — Risk-based margin calculated by the exchange clearing corporation. 2. **Exposure Margin** — Additional margin over SPAN for market-wide risk. 3. **Peak Margin** — Intraday margin snapshots; brokers must collect at least the peak margin observed during the day.

Use `calculate_fno_margin` to get exact margin for any trade before placing it.

Transaction Costs

• **STT (Securities Transaction Tax):** Levied on the sell side of options at

0.0625% of the intrinsic value on exercise (for ITM options at expiry). For futures, STT is 0.0125% on sell side.

• **Brokerage:** Varies by broker (Groww charges per-order flat fees).
• **Exchange charges, GST, SEBI turnover fee, stamp duty** also apply.

F&O Ban Mechanism

When the market-wide position limit (MWPL) for a stock's F&O contracts exceeds 95%, SEBI places the stock under an F&O ban. During the ban:

• No new positions can be initiated.
• Only squaring off (closing) of existing positions is allowed.
• The ban is lifted when MWPL drops below 80%.

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Broker MCP Tool Integration

This skill uses broker MCP tools for live market data and execution support. Use whichever broker is connected (Groww or Zerodha Kite). Always prefer live data over assumptions.

Groww MCP Tools (if connected)

| Tool | Purpose | |------|---------| | `get_ltp` (segment=FNO, query_type=fno) | Live option/futures prices and OI | | `get_quotes_and_depth` (segment=FNO) | Bid/ask spreads and market depth | | `fno_mcx_contracts_search_tool` | Search F&O contracts, lot sizes, expiries | | `fetch_historical_candle_data` (segment=FNO) | Historical option price data | | `fetch_curated_fno` | F&O gainers, losers, most traded | | `get_open_interest_analysis` | OI structure, PCR, support/resistance | | `get_greeks_for_fno_contract` | Live Greeks for specific contracts | | `get_greeks_for_fno_symbol` | Greeks for all contracts of an underlying | | `get_atm_straddle_chart` | ATM straddle premium analysis | | `get_payoff_chart_steps` | Payoff diagram generation instructions | | `calculate_fno_margin` | Margin requirement calculation | | `get_available_margin_details` | User's available margin | | `resolve_market_time_and_calendar` | Market hours and trading calendar |

Zerodha Kite MCP Tools (if connected)

| Tool | Purpose | |------|---------| | `get_ltp` | Last traded price for F&O instruments | | `get_quotes` | Real-time quotes with bid/ask depth | | `get_ohlc` | OHLC data for options/futures contracts | | `get_historical_data` | Historical candle data for F&O | | `search_instruments` | Search for F&O contracts by name/expiry | | `get_margins` | Account margins and available funds | | `get_positions` | Current F&O positions | | `get_orders` / `get_order_history` | Order status and execution details | | `place_order` / `modify_order` / `cancel_order` | Order management | | `place_gtt_order` / `get_gtts` | GTT order management |

Tool Equivalence Map

| Action | Groww MCP | Zerodha Kite MCP | |--------|-----------|------------------| | Live price | `get_ltp` | `get_ltp` | | Market depth | `get_quotes_and_depth` | `get_quotes` | | Historical data | `fetch_historical_candle_data` | `get_historical_data` | | Search contracts | `fno_mcx_contracts_search_tool` | `search_instruments` | | Margin check | `calculate_fno_margin` / `get_available_margin_details` | `get_margins` | | Positions | `get_my_trading_positions_today` | `get_positions` | | Place orders | `place_fno_order` | `place_order` |

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Supported Strategies

Income Strategies

1. **Covered Call** — Long underlying futures + Short OTM Call

• Objective: Generate income on existing long position.
• Best when: Mildly bullish, want to earn premium.
• Indian note: Use futures as underlying (no direct stock delivery for covered calls in F&O segment).

2. **Cash-Secured Put** — Short OTM Put (with marg