Black-Scholes pricing of a protective put or zero-cost collar on a single-stock position. Use for standalone hedge pricing on a single-stock position; for concentration-vs-hedge tax-cost comparison, use concentration_analyze with a hedgeChoice. Parameter interactions an agent should know: volatil...
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AI agents use protective_put_price to create or modify resources in Optionsahoy Mcp. Write operations carry medium risk because an autonomous agent could trigger bulk unintended modifications. Rate limits prevent a single agent session from making hundreds of changes in rapid succession. Argument validation ensures the agent passes expected values.
Without a policy, an AI agent could call protective_put_price repeatedly, creating or modifying resources faster than any human could review. PolicyLayer's rate limiting ensures write operations happen at a controlled pace, and argument validation catches malformed or unexpected inputs before they reach Optionsahoy Mcp.
Write tools can modify data. A rate limit prevents runaway bulk operations from AI agents.
{
"version": "1",
"default": "deny",
"tools": {
"protective_put_price": {
"limits": [
{
"counter": "protective_put_price_rate",
"window": "minute",
"max": 30,
"scope": "grant"
}
]
}
}
}See the full Optionsahoy Mcp policy for all 7 tools.
These attack patterns abuse exactly the kind of access protective_put_price gives an agent. Each links to the full case and the policy that stops it:
Other write tools across the catalogue. The same approach applies to each: rate-limit and validate the arguments.
Black-Scholes pricing of a protective put or zero-cost collar on a single-stock position. Use for standalone hedge pricing on a single-stock position; for concentration-vs-hedge tax-cost comparison, use concentration_analyze with a hedgeChoice. Parameter interactions an agent should know: volatility omitted falls back to sector_stats[sector].annualVol × 1.20 (the implied-over-realized vol multiplier); supply an explicit sigma when the user provides one. For collars, omitting upsideCapPct lets the tool back-solve the cap that zeros the net premium (truly zero-cost collar); supplying upsideCapPct overrides the solver and yields a non-zero net premium when the cap is wider than zero-cost. tenorYears drives the risk-free-rate lookup AND the floor-hit / cap-hit probability metrics, so changing tenor shifts every probability output even at fixed strike. expectedReturn affects only the probability metrics (real-world drift in the floor-hit / cap-hit calculations); premium math is risk-neutral and ignores it (default 0). protectionLevel sets the put strike as (1 − protectionLevel) × spot; raising it widens the protected zone but raises premium roughly linearly. Closed-form, deterministic, offline: sector volatility table and risk-free-rate curve compiled in. Reports annualized hedge cost as a percentage of position value, maximum loss with the hedge in place, upside-participation cap (collar only, since the short call offsets the long put premium), and probability of hitting the protection floor over the tenor. Returns a top-level object with keys: inputs (echoed canonical input), riskFreeRate (used in Black-Scholes), realWorldDrift (from expectedReturn), barePut (strike, premium, annualCost, annualCostPct, maxLoss, badYearPrice, badYearDropPct, coveredLossAtBadYear, premiumToCoveredRatio, expectedProfit, premiumToExpectedProfitRatio), collar (putStrike, callStrike, netPremium, annualCost, annualCostPct, maxLoss, upsideCap, upsideCapPct, isZeroCost, capProbability), payoffTable, payoffRange, and recommended (the better of bare put vs collar given the inputs). Both barePut and collar blocks are always returned regardless of caller preference; the caller picks. Example call: {positionValue: 400000, sector: "tech_software", protectionLevel: 0.10, tenorYears: 1}. IMPORTANT: every field listed in required must come from the user's message. The model invoking this tool MUST NOT invent a value for any required field. If the user did not supply it, ask the user. For enum fields that accept unsure, pass unsure when the user does not know; do not guess yes/no.. It is categorised as a Write tool in the Optionsahoy Mcp MCP Server, which means it can create or modify data. Consider rate limits to prevent runaway writes.
Register the Optionsahoy MCP server in PolicyLayer and add a rule for protective_put_price: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches Optionsahoy Mcp. Nothing to install.
protective_put_price is a Write tool with medium risk. Write tools should be rate-limited to prevent accidental bulk modifications.
Yes. Add a rate_limit block to the protective_put_price rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.
Set action: deny in the PolicyLayer policy for protective_put_price. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.
protective_put_price is provided by the Optionsahoy MCP server (https://optionsahoy.com/mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.
Deterministic rules across all 7 Optionsahoy Mcp tools. Per-identity grants. Full audit log. Live in minutes. Nothing to install.
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