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ib-collar

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IB Tactical Collar

Generate a tactical collar strategy report for protecting PMCC positions through earnings or high-risk events.

Prerequisites

User must have TWS or IB Gateway running locally with API enabled:

  • Paper trading: port 7497
  • Live trading: port 7496

Instructions

Step 1: Gather Data

uv run python scripts/collar.py SYMBOL [--port PORT] [--account ACCOUNT]

The script returns JSON to stdout with all position and scenario data.

Step 2: Format Report

Read templates/markdown-template.md for formatting instructions. Generate a markdown report from the JSON data and save to sandbox/.

Step 3: Report Results

Present key findings to the user: recommended put protection, cost/benefit, and the saved report path.

Arguments

  • SYMBOL - Stock symbol to analyze (must be in portfolio)
  • --port - IB port (default: 7496 for live trading)
  • --account - Specific account ID (optional, searches all accounts)

JSON Output

The script returns JSON with these key fields:

  • symbol, current_price - Basic info
  • long_strike, long_expiry, long_qty, long_cost - LEAPS position
  • short_positions - List of short calls
  • is_proper_pmcc, short_above_long - PMCC health flags
  • earnings_date, days_to_earnings - Earnings timing
  • put_analysis - List of put scenarios with costs and P&L under gap up/flat/down
  • unprotected_loss_10, unprotected_loss_15, unprotected_gain_10 - LEAPS risk without collar
  • volatility - Historical volatility data

Report Sections

  1. Position Summary: Current PMCC structure (long calls, short calls)
  2. PMCC Health Check: Is structure proper (short > long strike) or broken?
  3. Earnings Risk: Next earnings date and days until event
  4. Put Duration Analysis: Comparison of short vs medium vs long-dated puts
  5. Collar Scenarios: Gap up, flat, gap down outcomes with each put duration
  6. Cost/Benefit Analysis: Insurance cost vs protection value
  7. Implementation Timeline: Step-by-step checklist with dates
  8. Recommendation: Optimal put strike and expiration

Key Concepts

Proper PMCC Structure:

  • Long deep ITM LEAPS call
  • Short OTM calls ABOVE long strike
  • No additional margin required for collar

Broken PMCC Structure:

  • Long call is now OTM (after crash)
  • Short calls BELOW long strike require margin
  • Collar still works but margin implications exist

Tactical Collar:

  • Buy protective puts ONLY before high-risk events (earnings)
  • Sell puts after event passes
  • Balances income generation with crash protection

Put Duration Trade-offs:

  • Short-dated: Cheaper, more gamma, but zero salvage on gap up
  • Medium-dated (2-4 weeks): Best balance of cost, gamma, and salvage
  • Long-dated: Preserves value on gap up, but expensive and less gamma

Example Usage

# Analyze NVDA position (defaults to production port 7496)
uv run python scripts/collar.py NVDA

# Analyze specific account
uv run python scripts/collar.py AMZN --account U790497

# Use paper trading port instead
uv run python scripts/collar.py NVDA --port 7497

Source

git clone https://github.com/staskh/trading_skills/blob/main/.claude/skills/ib-collar/SKILL.mdView on GitHub

Overview

Generates tactical collar strategy reports to shield PMCC positions during earnings and high-risk events. It runs against a local IB API (TWS or IB Gateway) to gather position data, evaluate short and long strike relationships, and produce a markdown report with recommendations.

How This Skill Works

Run the collar.py script with SYMBOL and optional port/account to collect current PMCC data as JSON. The tool formats that data into a markdown report using templates/markdown-template.md and saves it under sandbox/, then presents a concise result with suggested put protection and cost/benefit.

When to Use It

  • Ahead of quarterly earnings for a PMCC position to evaluate protection needs
  • During high-risk events or volatility spikes affecting PMCC health
  • When you want a structured cost/benefit analysis of collar protection
  • For validation in paper trading (port 7497) before live deployment
  • When integrating with TWS/IB Gateway for live portfolio monitoring

Quick Start

  1. Step 1: Gather Data - uv run python scripts/collar.py SYMBOL [--port PORT] [--account ACCOUNT]
  2. Step 2: Format Report - Read templates/markdown-template.md and generate a markdown report saved to sandbox/
  3. Step 3: Report Results - Review key findings, recommended put protection, and the report path

Best Practices

  • Ensure TWS or IB Gateway is running locally with API enabled and the correct port (live: 7496, paper: 7497)
  • Use the SYMBOL that exists in your portfolio to avoid mismatched data
  • Check the PMCC health flags is_proper_pmcc and short_above_long before relying on the output
  • Compare short/duration put scenarios (short, medium, long) to balance cost and salvage
  • Run the analysis first in paper trading to validate results before enabling live usage

Example Use Cases

  • Analyze NVDA ahead of earnings to build a tactical collar around a PMCC position
  • Generate a collar report for AMZN using a specific account ID (e.g., U790497)
  • Use paper trading port 7497 to test collar scenarios without risking real capital
  • Assess SPY PMCC with LEAPS around a known high-volatility event
  • Evaluate a high-growth stock with long-dated LEAPS and short calls to quantify protection

Frequently Asked Questions

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