REGRET: Autonomous AI Options Trading Agent

REGRET is an autonomous quantitative options trading agent built for the Alpaca AI Trading Agents Hackathon. It addresses the fundamental flaw of traditional AI trading bots, specifically hallucinated entries and unbounded tail risk, by strictly separating open source probabilistic reasoning from deterministic code execution. 1. Strategic Intelligence Layer: The system continuously screens liquid underlyings (SPY, QQQ, NVDA, IWM) for elevated Implied Volatility regimes where IV Rank exceeds 50%. Using Featherless.ai serverless inference with open source quantitative models (Qwen 2.5 72B and Llama 3.3 70B), REGRET analyzes macroeconomic context, volatility skew, and support and resistance levels to formulate defined risk credit spread setups (Bull Put Spreads and Bear Call Spreads). 2. Six Deterministic Python Risk Gates: Before any order reaches the broker, it must pass all six hardcoded mathematical risk gates: (1) Max Loss Cap: Hard ceiling at $500 max loss per trade with zero naked risk. (2) Daily Drawdown Halt: Trading halts if cumulative daily loss exceeds $2,000. (3) Position Ceiling: Maximum 5 concurrent hedged spreads. (4) Liquidity and Spread Health: Rejects contracts exceeding a 10% bid ask spread to credit ratio. (5) Greeks Validation: Requires positive net Theta and bounded Delta between minus 0.40 and plus 0.40. (6) Expiration Safety: Limits expiries between 7 and 45 DTE to prevent gamma explosions. 3. Alpaca Execution and Lifecycle Management: Approved trades are routed natively through the Alpaca multileg options API. An active position manager continuously monitors the book, executing automated exits at 50% profit target, 2.0x initial credit stop loss, or 1 DTE expiration guard to eliminate assignment and pin risk. REGRET provides full CLI tooling, MCP server endpoints, and an interactive real time dashboard.