| # Options Scanner — automated multi-strategy trade builder |
|
|
| Also packaged as an **MCP server** (7 tools: scan, build, position/roll checks) |
| for Claude Desktop, Claude Code and Hermes — see [MCP_SERVER.md](MCP_SERVER.md) |
| for setup and an honest evaluation of the engine. |
|
|
| [](https://hf.co/chat?mode=ml-intern) |
|
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| Automated options scanner: pulls option chains + stock quotes from free |
| online sources (Nasdaq/NYSE listed underlyings via Yahoo Finance), builds |
| multi-leg strategies with a defined-risk-first design, gates every candidate |
| through a risk engine, and outputs ranked trades as JSON/CSV for the browser |
| dashboard. |
|
|
| ## Data sources |
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|
| | Provider | Latency | Setup | Adapter | |
| |---|---|---|---| |
| | Alpaca (IEX) | real-time | `ALPACA_KEY_ID` + `ALPACA_SECRET_KEY` env vars (free) | `AlpacaProvider` | |
| | Tradier | real-time | `TRADIER_API_KEY` env var (free with brokerage account) | `TradierProvider` | |
| | Polygon.io | real-time | `POLYGON_API_KEY` env var (options plan) | `PolygonProvider` | |
| | Yahoo Finance | ~15 min delayed | none (`pip install yfinance`) | `YFinanceProvider` (default) | |
|
|
| The scanner auto-selects the best provider present: **Tradier > Alpaca > |
| Polygon > yfinance**, or force one with `--provider`. All providers share one |
| normalized `Chain` model, so switching feeds changes nothing else. |
|
|
| Alpaca's free IEX feed has no open interest and thin one-sided quotes on some |
| contracts; the engine treats one-sided quotes as wide markets (penalized in |
| scoring, never silent) and drops quotes with impossible implied vols. |
|
|
| > Honest note: "real-time" free options data does not exist anywhere. Free |
| > feeds are delayed ~15 min. Plug in a Tradier key (free tier with a broker |
| > account) for real-time chains. |
|
|
| ## Strategies built |
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| Defined-risk by default — every short leg is paired inside a spread: |
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| - Verticals: bull/bear credit spreads and bull/bear debit spreads |
| - Calendars (call & put, same strike) |
| - Diagonals (long theta, offset strikes across expirations) |
| - Long butterflies and Iron butterflies |
| - Iron condors |
| - Call ratio backspreads (1x2) |
| - Jade lizards (credit > call-spread width where available) |
| - Double diagonals (the defined-risk "short strangle") |
| - Short straddles/strangles: rejected by default (undefined risk); pass |
| `--allow-undefined-risk` to admit them with a loud warning — the defined-risk |
| equivalents (iron fly / double diagonal) are built instead |
|
|
| ## Risk engine |
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| - Payoff-grid max profit / max loss / breakevens at the shortest leg's expiry; |
| back-month legs valued with Black-Scholes at that date (honest calendar and |
| diagonal risk). Max loss is floored at the debit actually paid. |
| - Gates: per-leg open interest, bid-ask spread vs mid, positive bids, defined |
| risk, buying-power effect ≤ max % of account, earnings dates inside the |
| trade window. |
| - POP from lognormal distance of short strikes; composite score = expectancy |
| (45%) + POP (25%) + credit efficiency (20%) + liquidity (10%). |
|
|
| ## Rolling mechanics |
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| `rolling.RollManager.check(position, chain, rules)` marks open positions and |
| returns concrete actions: close at profit target (default 50% of credit), |
| stop at 2x credit, and rolls — out, out-and-down (tested put), out-and-up |
| (tested call) — when DTE hits the management window or a short strike's delta |
| breaches the tested threshold. |
|
|
| ## Quick start |
|
|
| ```bash |
| pip install yfinance |
| |
| # auto universe (40 large caps + high-IV names + ETFs), free delayed data |
| python -m options_scanner.scan --output results.json --csv results.csv |
| |
| # your watchlist, real-time via Alpaca |
| export ALPACA_KEY_ID=... ALPACA_SECRET_KEY=... |
| python -m options_scanner.scan --symbols SPY,QQQ,NVDA --provider alpaca |
| ``` |
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| Tune per-trade risk with `--account-size` and `--risk-pct`. |
|
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| ## Output |
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| `results.json` carries `top_candidates` (ranked by composite score, best 3 per |
| symbol) with full leg lists, breakevens, BPE in dollars, POP, and the reasons |
| each trade passed/failed gates; `errors` lists tickers that failed to load. |
| The JSON is what the browser dashboard reads. |
|
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| ## Disclaimer |
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| Educational tooling, not financial advice. Option pricing uses delayed data |
| unless a real-time key is configured; verify every structure in your broker |
| before trading. |
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|
