FIXED STRADDLE/STRANGLE CHART

Fixed Straddle/Strangle Chart is a FREE indicator designed for option traders to track the combined premium prices of straddle/strangle positions of fixed strike prices. This TradingView indicator even allows non-equidistant tracking of call and put options at different strike prices.

About the Indicator:

The Fixed Straddle/Strangle Chart offers a sophisticated tool for monitoring the premium prices of combined strikes (CE and PE). This indicator enables traders to choose between tracking straddles or strangles on a fixed strikes, offering flexibility to adapt to various trading strategies. By integrating this indicator into your TradingView setup, you can visualize the combined premiums of call and put options with different strike prices, making it easier to identify profitable opportunities and manage risks effectively.

Features:

  • Straddle Premium Tracking: Monitor the combined premium of call and put options of ATM or near ATM strikes.
  • Strangle Premium Tracking: Monitor the combined premium of call and put options of ATM or equidistance OTMs/ITMs.
  • Fixed Strikes: Focus on specific strike prices for targeted analysis.
    • Equidistant strikes
    • Non-equidistant strikes
  • Real-Time Data: Access up-to-the-minute market data for accurate analysis.
  • Customizable: Adjust parameters to fit your trading strategy with the help of indicators

Understanding the Indicator:

  • Combined Premium Plot: The chart displays the sum of the call and put option premiums for the selected different strikes.
  • Price Movements: Monitor the fluctuations in the combined premiums to gauge market volatility and sentiment.
  • Support and Resistance Levels: Identify levels where the combined premium tends to stabilize, indicating potential support and resistance.
  • Trend Analysis: Look for patterns such as uptrends, downtrends, or sideways movements in the combined premiums to make trading decisions.
  • Volatility Indicators: Sharp increases or decreases in the combined premium may signal significant market events or shifts.

Input Parameters:

  • Symbol: Select required symbol to track. Note that even stock options can be tracked. For that select, “Other” in the symbol dropdown and choose the stock in the next adjacent field.
  • Chart Type: Choose between “Fixed Straddle” and “Fixed Strangle”.
    • Fixed Straddle shows the combined premium of CE and PE of your chosen strike (ATM or any other)
    • Fixed strangle can have any 2 different strikes of user’s choice.
    • Note: Whether client selects Fixed Straddle or Fixes Strangle, all 3 fields need to filled up (Straddle, CE and PE)
  • Reference ATM (Important): Closest ATM strike needs to be entered to track ATM straddle. For instance if index is trading at 22364 and strikes are available 22350 (lower) and 22400 (upper), then 22350 needs to be entered since it’s closest to current market price.
  • Expiry: Define the expiry date that respective index.
  • Strike Difference: This is the difference between 2 strikes (not lot size) and is usually fixed. No need to change frequently after initial set up and save.
  • Indicators: Moving Average, Super Trend, ATR, Swing High/Low, Vwap
    • Check/uncheck required indicator to plot over straddles and strangle chart
    • Change default values of the indicator if required.
  • CE/PE: Select CE/PE charts to see the graphs of individual premiums of ATM strikes.

Pro Tip: Once after you enter all the values, you can hit on “save as default” so that next time you open this chart, you can reuse these settings.

How to avail this free indicator?

  • Go to TradingView indicators section, search for “Fixed Straddle with dynamic Res/Sup [Bluechip Algos]” and click on it.
    • Tip: You can also add to favorites so that next time it will be available just under your “Favorites” section
  • Once the indicator is applied to your chart, go to settings and configure the input parameters as mentioned above.
  • Great, you are done and can start using the indicator.

Summary:

The Fixed Straddle/Strangle Chart is a crucial tool for option traders aiming to enhance their market analysis and decision-making process. By tracking combined premiums with flexibility in strike prices, this indicator helps you stay ahead of market movements and optimize your trading strategy. Start using this indicator today to elevate your trading performance.