This script marks the last Friday of the month in a daily chart because this is the day when BTC and ETH options expire according to Deribit. I only found a script that highlights the 3rd Friday of the month, which is not what I wanted. This script tries to figure out the correct number of days per month but is not aware of holidays which might displace the expiry date.
Release Notes
[Updated using a clean chart.]
This script tries to mark the last Friday of the month in the chart with a vertical line and/or a label. It is meant for use on a daily BTC chart.
Deribit is a place where you can trade BTC and ETH options. Monthly and quarterly options expiry dates are relevant. From deribit.com/pages/information/Introduction_Policy: Daily options expire every day at 08:00 UTC. Weekly options expire on each Friday of each week at 08.00 UTC. Monthly options expire on the last Friday of each calendar month at 08.00 UTC. Quarterly options expire on the last Friday of each calendar quarter at 08.00 UTC.
Release Notes
UPDATE: Now also shows the expiration Friday for the current month even if it lies in the future.
Extended the description in the header of the source code.
Apologies, dudes and dudesses. The previous version was pretty broken. How hard can it be to find the Fridays? Well, pretty hard for me, it seems... :-)
Release Notes
Another bug fix for the future last Friday of the month (how embarrasing). Added highlighting of past quadruple witching Fridays (future dates not working, yet). Converted to Pine Script v5.
Release Notes
This is a complete rewrite that should solve all update problems. Quadruple witching Fridays are now fully supported for the past and the future. See also the updated documentation at the top of the script code.
Looking forward: I think it would be nice to receive an alert from this script some days before an upcoming special Friday. Let me know if you would find this useful.
Release Notes
Fix that makes the script work correctly with symbols that use a different time base (e.g. NIKKEI and NFTY).
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publications is governed by House rules. You can favorite it to use it on a chart.
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