TradingAgents/.planning/REQUIREMENTS.md

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Requirements: TradingAgents Options Module

Defined: 2026-03-29 Core Value: Agents produce actionable multi-leg options recommendations with transparent, educational reasoning

v1 Requirements

Requirements for initial release. Each maps to roadmap phases.

Data Foundation

  • DATA-01: System can retrieve full options chain (strikes, expirations, bid/ask, volume, OI) via Tradier API
  • DATA-02: System can retrieve options expirations and available strikes for any ticker via Tradier API
  • DATA-03: System displays 1st-order Greeks (Delta, Gamma, Theta, Vega, Rho) from ORATS via Tradier
  • DATA-04: System displays implied volatility per contract (bid_iv, mid_iv, ask_iv, smv_vol)
  • DATA-05: System can filter options chains by DTE range (e.g., 30-60 DTE for income strategies)
  • DATA-06: System calculates 2nd-order Greeks (Charm, Vanna, Volga/Vomma) via blackscholes library
  • DATA-07: System can retrieve real-time streaming Greeks and quotes via Tastytrade DXLink WebSocket
  • DATA-08: System integrates Tradier and Tastytrade as new vendors in the existing data routing layer

Volatility Analysis

  • VOL-01: System calculates IV Rank using 52-week IV high/low for any ticker
  • VOL-02: System calculates IV Percentile using 252-day lookback of IV readings
  • VOL-03: System estimates Probability of Profit (PoP) for each recommended strategy
  • VOL-04: System constructs volatility surface via SVI parametric fitting across strikes and expirations
  • VOL-05: System implements Tastytrade rules engine: IVR-based strategy selection (IVR >= 50% = sell premium, IVR < 30% = buy premium)
  • VOL-06: System implements Tastytrade position management rules: 45 DTE entry target; when any leg reaches 21 DTE, begin mandatory managementclose or roll every leg of the position (exceptions only when explicitly allowed in config); 50% profit target; 2x credit stop-loss (numeric thresholds validated per CONFIG-01)
  • VOL-07: System calculates Volatility Risk Premium (VRP) by comparing IV to historical/realized volatility (independent of the 21 DTE management timing in VOL-06)

Dealer Positioning & Flow

  • GEX-01: System computes Net Gamma Exposure (GEX) across all strikes from open interest data
  • GEX-02: System identifies Call Wall and Put Wall levels (max positive/negative gamma strikes)
  • GEX-03: System identifies Gamma Flip zone (where cumulative GEX changes sign) and Vol Trigger level
  • GEX-04: System classifies market regime as positive gamma (mean-reverting) or negative gamma (trending)
  • FLOW-01: System detects unusual options activity by comparing volume to historical average and open interest
  • FLOW-02: System classifies flow direction (bullish/bearish) based on trade side, strike location, and OI changes

Strategy & Output

  • STRAT-01: System recommends multi-leg options strategies (verticals, iron condors, straddles, strangles, butterflies, jade lizards, diagonals, calendars)
  • STRAT-02: System selects strategy type based on IV environment (high IV = credit strategies, low IV = debit strategies) and directional bias
  • STRAT-03: System outputs specific contract recommendations with exact strikes, expirations, and leg quantities
  • STRAT-04: System outputs alternative strike/expiration ranges when exact contracts are illiquid or close to thresholds
  • STRAT-05: System calculates max profit, max loss, and breakeven points for each recommended strategy
  • STRAT-06: System provides transparent reasoning chain showing why each strategy was selected (educational)

Agent Pipeline

  • AGENT-01: Volatility analysis agent evaluates IV Rank, IV Percentile, VRP, vol surface, and skew
  • AGENT-02: Greeks analysis agent evaluates 1st and 2nd-order Greeks and their implications for position risk
  • AGENT-03: Options flow / unusual activity agent identifies smart money signals and flow direction
  • AGENT-04: Gamma exposure agent analyzes dealer positioning, gamma walls, regime, and structural levels
  • AGENT-05: Strategy selection agent recommends specific multi-leg strategies based on all analysis inputs
  • AGENT-06: Position sizing agent calculates risk/reward profiles (max P/L, breakevens, PoP) for recommended strategies
  • AGENT-07: Options debate phase runs bull/bear debate on the options thesis with configurable rounds
  • AGENT-08: Options portfolio manager synthesizes all analysis and debate into final recommendation with reasoning
  • AGENT-09: All options agents follow existing create_*() factory pattern and write to shared AgentState; factories expose hooks for OBS-01 decision/audit logging and VAL-01 pre-invocation validation of tool inputs
  • AGENT-10: Composite Options Score (0-5) computed from IV rank, GEX regime, flow signals, and vol skew

Integration

  • INT-01: Options analysis team runs as parallel section in the LangGraph StateGraph alongside existing stock analysis
  • INT-02: Options agents are configurable and optional (can be enabled/disabled like existing analysts)
  • INT-03: CLI updated to support options analysis mode with interactive options-specific prompts
  • INT-04: Deterministic validation layer checks strategy structural validity, risk limits, and liquidity before output
  • INT-05: All deterministic math (Black-Scholes, GEX, 2nd-order Greeks, P/L) in pure Python module, not LLM tool calls

Reliability & Observability

  • REL-01: Graceful handling of external API failures: bounded retries where appropriate, clear user-facing errors (no silent empty success)
  • REL-02: Rate limiting, exponential backoff, and quota awareness for all external APIs used by DATA-01DATA-08 (and shared HTTP clients)
  • VAL-01: Validate external payloads (schema/range checks) before downstream processing for DATA-01DATA-08 and AGENT-01AGENT-06 tool inputs
  • OBS-01: Structured agent decision logging / audit trail for AGENT-02, AGENT-05, AGENT-08, and rationale tied to STRAT-06
  • CONFIG-01: VOL-05 / VOL-06 numeric thresholds (IVR bands, DTE targets, profit/stop multiples) are configuration-driven, validated at startup, and documented

v2 Requirements

Deferred to future release. Tracked but not in current roadmap.

Enhanced Data

  • EDATA-01: Historical IV surface storage for backtesting and regime comparison
  • EDATA-02: 0DTE strategy analysis with sub-minute data refresh
  • EDATA-03: Multi-ticker batch analysis for portfolio-level options scanning

Advanced Analytics

  • ADV-01: Portfolio-level Greeks aggregation across multiple positions
  • ADV-02: Custom volatility models (Heston, local vol) for exotic pricing
  • ADV-03: Options backtesting engine with historical vol surfaces and fill simulation

Out of Scope (v1)

Permanent exclusions for v1 — not planned for the initial options module release.

Feature Reason
Order execution / broker integration Analysis-only mandate; regulatory complexity
Real-time streaming dashboard Batch propagate() architecture; streaming is for data freshness only
Mobile/web UI CLI and Python API only

Deferred to v2

Tracked as v2 requirements (EDATA-* / ADV-*) — not in the current v1 roadmap, but not permanently excluded.

v2 ID Topic Note
EDATA-01 / EDATA-02 / EDATA-03 Historical IV storage, 0DTE, multi-ticker batch See v2 Enhanced Data section
ADV-01 / ADV-02 / ADV-03 Portfolio Greeks aggregation, custom vol models, options backtesting See v2 Advanced Analytics section

Traceability

Which phases cover which requirements. Updated during roadmap creation.

Requirement Phase Status
DATA-01 Phase 1 Complete
DATA-02 Phase 1 Complete
DATA-03 Phase 1 Complete
DATA-04 Phase 1 Complete
DATA-05 Phase 1 Complete
DATA-06 Phase 2 Pending
DATA-07 Phase 10 Pending
DATA-08 Phase 1 Complete
VOL-01 Phase 3 Pending
VOL-02 Phase 3 Pending
VOL-03 Phase 6 Pending
VOL-04 Phase 5 Pending
VOL-05 Phase 7 Pending
VOL-06 Phase 7 Pending
VOL-07 Phase 3 Pending
GEX-01 Phase 4 Pending
GEX-02 Phase 4 Pending
GEX-03 Phase 4 Pending
GEX-04 Phase 4 Pending
FLOW-01 Phase 4 Pending
FLOW-02 Phase 4 Pending
STRAT-01 Phase 6 Pending
STRAT-02 Phase 6 Pending
STRAT-03 Phase 6 Pending
STRAT-04 Phase 6 Pending
STRAT-05 Phase 6 Pending
STRAT-06 Phase 6 Pending
AGENT-01 Phase 8 Pending
AGENT-02 Phase 8 Pending
AGENT-03 Phase 8 Pending
AGENT-04 Phase 8 Pending
AGENT-05 Phase 8 Pending
AGENT-06 Phase 8 Pending
AGENT-07 Phase 9 Pending
AGENT-08 Phase 9 Pending
AGENT-09 Phase 8 Pending
AGENT-10 Phase 8 Pending
INT-01 Phase 9 Pending
INT-02 Phase 9 Pending
INT-03 Phase 9 Pending
INT-04 Phase 9 Pending
INT-05 Phase 2 Pending

Coverage:

  • v1 checklist items: 42 core + 5 reliability/observability (REL-01REL-02, VAL-01, OBS-01, CONFIG-01); phase mapping for the five to be assigned during Phase 8/9 planning
  • Mapped to phases: 42 (core)
  • Unmapped: REL/VAL/OBS/CONFIG (pending phase assignment)

Requirements defined: 2026-03-29 Last updated: 2026-03-29 after roadmap creation