Venta's DikFat Spread Visualizer & Dynamic Options Chain

3일 전

**Venta's DikFat Spread Visualizer and Options Chain Strike Scanner** is a powerful trading tool designed to give users an immediate view of the nearest options strikes relative to the current price of the underlying asset. This script dynamically displays a selected number of call and put options strikes from the **options chain**, visualizing them directly on the chart for better decision-making.

By default, the script shows options strikes for the current chart’s price, but users have the flexibility to extend the view to include strikes on the opposite side of the market. The available options allow you to show either 3, 6, or 9 strikes on either side of the current price level.

This tool is essential for options traders who want to track strike prices in relation to the underlying asset's price movements. It provides key visual clues such as strike price distributions, volatility, and potential areas of market basing—all in a customizable and user-friendly interface.

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█ CONCEPTS

This script pulls real-time **options strikes** directly from the **options chain**, providing traders with the ability to see call and put strikes as dynamic price markers on their chart. The concept revolves around understanding the proximity and distribution of strikes based on the current price and market conditions.

Key Features

• **Dynamic Options Strike Display**: The script automatically identifies and displays the options strikes closest to the current market price of the underlying asset.
  
  
• **Customizable Strike Range**: Choose between 3, 6, or 9 strikes on either side of the current price, giving flexibility in visualizing different strike ranges.
  
  
• **Current Chart Focused by Default**: When added to the chart, the script focuses on the strikes closest to the current price. However, users can opt to include strikes on the opposite side of the market for a broader view.
  
  
• **Instant Market Context**: The displayed
  strikes offer a snapshot of the options market and how the current price relates to potential option expiration levels, helping traders understand key zones.
  
  
• **Visual Clues on Spreads & Volatility**: This script not only displays the strikes but also provides instant visual clues that reflect the volatility and spread of the options market.
  

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█ HOW IT WORKS

The script operates by accessing the **options chain** for the underlying asset, identifying the nearest call and put strikes, and plotting them as visual markers on the chart. This real-time strike data is dynamic, adjusting automatically as the market price moves.

Strike Calculation

• The script uses the current price of the underlying asset as a base point and calculates the nearby **options strikes** from the **options chain**.
  
• Depending on the user's settings, the script will plot up to 9 strikes on either side of the price level.
  
• This calculation is performed using live market data, making sure the plotted strikes always reflect the most current market conditions.
  

Visual Clues

• **Spreads**: The space between the plotted call and put options strikes provides immediate insights into the current bid/ask spreads. If the spread between strike prices is wide, it suggests increased volatility or a higher level of uncertainty in the market. Conversely, narrow spreads often indicate market stability or a lack of price movement.
  
  
• **Market Basing**: When options strikes form a concentrated group near a certain price level, it can indicate that the market is building up or basing at a key level. This might signal the potential for a breakout or a reversal.
  
  
• **Volatility Insights**: Wider gaps between strikes, particularly on the call side versus the put side (or vice versa), can indicate an imbalance in options trading activity, often a reflection of higher volatility expectations. This visual clue can help traders assess when the market is pricing in significant movements.
  

Customization and User Settings

• **Number of Strikes**: The number of options strikes shown is fully customizable, allowing users to display 3, 6, or 9 strikes on either side.
  
  
• **Show Opposite Strikes**: By default, the script shows strikes on the current side of the market, but users can enable the option to show strikes on the opposite side to gain a more complete view of the market's options landscape.
  
  
• **Strike Colors & Width**: Customize the visual appearance of the plotted strikes by adjusting the color and line width for better clarity and chart aesthetics.
  

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█ POTENTIAL USE CASES

This indicator is especially valuable for **options traders**, **market analysts**, and anyone interested in gaining insights into the underlying options market. Here are some of the key use cases:

• **Options Traders**: Quickly identify the nearest strike prices and understand the risk/reward potential for options positions. The ability to customize the number of strikes shown allows traders to focus on the most relevant price levels.
  
  
• **Volatility Monitoring**: Use the visual clues from the spread between strike prices to assess the level of volatility in the options market. A wider spread suggests that options traders are expecting more significant price moves, while a narrow spread indicates less expected movement.
  
  
• **Support and Resistance Identification**: The clustering of strike prices on one side of the market can indicate a potential support or resistance level. By monitoring these levels, traders can get a sense of where the market may reverse or consolidate.
  
  
• **Market Sentiment Analysis**: A large concentration of call strikes above the current price level, or put strikes below, can be an indication of market sentiment, such as whether traders are generally bullish or bearish.
  
  
• **Risk Management**: By tracking nearby options strikes, traders can adjust their strategies to minimize risk, especially when market price levels approach significant strike points.
  

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█ FEATURES

• **Real-Time Data**: The script pulls data from the **options chain**, ensuring that the plotted strikes are always up-to-date with the current market price.
  
  
• **User-Friendly Interface**: Clear and customizable inputs allow users to easily adjust the number of strikes displayed and control visual settings such as colors and line widths.
  
  
• **Visual Strike Indicators**: Instantly spot volatility, market basing, and spread imbalances through visual clues from the plotted strikes, enhancing your market analysis.
  

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█ LIMITATIONS

• **Accuracy Depends on Market Data**: This indicator relies on the available **options chain** data. While the data is updated in real-time, its accuracy may depend on the liquidity and availability of options contracts in the market.
  
  
• **Not Suitable for Non-Options Traders**: If you don’t trade options, the relevance of this indicator may be limited as it is designed specifically to provide insight into the options market.
  
  
• **Data Delays**: In fast-moving markets, there may be a slight delay in the updating of strike prices, depending on the data feed.
  

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█ HOW TO USE

• **Load the Script**: Add the **Venta's DikFat Spread Visualizer and Options Chain Strike Scanner** script to your TradingView chart.
  
  
• **Adjust Settings**: Use the input options to select the number of strikes you want to display (3, 6, or 9). You can also choose whether to display only the current chart’s strikes or include strikes from the opposite side.
  
  
• **Interpret the Strikes**: Look at the plotted strikes to gain insights into where the market is currently pricing options and where major strike prices are located. Pay attention to the spreads, concentrations, and volatility signals.
  
  
• **Monitor the Market**: As the market moves, watch how the strikes shift and cluster, providing you with real-time information about market sentiment and potential volatility.
  

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█ THANKS

We would like to extend our gratitude to the PineCoders community for their ongoing support and contributions to the TradingView Pine Script ecosystem. Special thanks to The Options Team.