Whenever the price is above the green line short PE only.
Why credit put ratios much more attractive than call ratios.
Conclusion: the author's conclude that YES there is risk premium in puts otms, which they call it "skew risk premium", and while almost half of implied skew observed in option prices of PEs is due to negative index volatility correlation the...
OptionsMillionaire's SPY Options trading system is based mainly on these indicators:
- 8 EMA*
- 21 EMA*
- 100 SMA*
- 200 SMA*
- Squeeze Momentum
(*provided by this indicator)
and follows these rules:
| 1) I never fight the trend. If its green, i buy calls. If its red, i buy puts. I will only buy puts on a...
Good afternoon traders,
This is a script I built for option selling, in attempt to have a high success rate.
The gist of how it works:
It uses the opening or close of the current chart's timeframe opening bar when referenced against a designated (higher) timeframe's central pivot range (CPR).
Using that comparison, this script calculates an option to sell: ...
What is the Indicator?
• The indicator is a visualization of maximum price in which the respective index can go up to in comparison with it's Volatility Index or VIX.
Who to use?
• Long term Investors
• Portfolio Managers
• Mutual Fund Managers
• Index Traders
• Volatility based Traders
• Long term Investors...
Intrangle is an indicator to assist Nifty / Bank Nifty Option Writers / Sellers to identify the PE / CE legs to Sell for Straddle and Strangle positions for Intraday.
Basic Idea : (My Conclusion for making this Indicator)
1) Last 10 Years data says Nifty / Bank Nifty More than 66% of times Index are sideways or rangebound (within 1% day) .
2) Mostly, First one...
This simple script uses the idea of inertia of the market. if 2 previous candles have the same color, current meant to have that too. Following this signal is equal to buying a binary option on the start of the bar (week here). Signals are shown as arrows on the series. The color of the bar shows the outcome of the current option: yellow is success, black is...
This strategy is developed based on my High Low Index SPY Top 40 indicator
- this strategy is only developed for SPY on the 5 min chart . It seems to work with QQQ as well, but it isn't optimized for it
- P/L shown is based on 10 SPY option contracts, call or put, with strike price closest to the entry SPY price and expiry of 0 to 1 day. This...
This script calculates the Implied Volatility (IV) based on the daily returns of price using a standard deviation. It then annualizes the 30 day average to create the historical Implied Volatility. This indicator is intended to measure the IV for options traders but could also provide information for equities traders to show how price is extended in the expected...
We all know that the value of an Bank Nifty is derived from top banking sector underlying stocks.
The value of Bank Nifty is calculated from free float market capitalization.
Using the same formula, I made an indicator on the bases of weighted volume of each stock.
This indicator will help you to plot Volume on Bank Nifty.
Use only for:
SPX, 5 minutes time frame
This indicator is complementing options 0DTE strategy - selling options for SPX index in the same day as they are expiring. Output of the indicator (red or green color of the curve) indicates whether is profitable to sell options at given moment at delta and VIX specified in the parameters. Changing parameter "Candles" is...
If you are an option trader, who are constantly searching opportunities to set up inverse iron condor position or other strategies, you must be familiar in estimating the range induced by Geometric Brownian Motion (GBM), or Lognormal distribution someone may call.
The theory behind is adopted in the Black Scholes Option Pricing model, this assumes the asset price...
Weekly Put Sale
This study is a tool I use for selling weekly puts at the suggested strike prices.
1. The suggested strike prices are based on the weekly high minus an ATR multiple which can be adjusted in the settings
2. You can also adjust the settings to Monthly strike prices if you prefer selling options further out
3. I suggest looking for Put sale...