Straddle/Strangle Premium with IV
The combined premium can be displayed as:
Regular Candles, or
Heikin Ashi Candles for smoother trend interpretation.
Core Features
🔹 Combined Premium Price Action
Displays Call + Put combined premium as a chart
Helps track premium expansion and contraction
Makes volatility behavior visually intuitive
🔹 Trend Confirmation (Short Moving Average)
A short-term moving average is plotted on the premium chart
Line turns:
Green when premium is trading above it
Red when premium is trading below it
Helps identify premium trend direction in short-term.
🔹 Premium Strength Filter (Volume Moving Average)
A volume-based moving average is used to assess premium participation
When premium is:
Above the volume MA → Structure favors premium expansion (long bias)
Below the volume MA → Structure favors premium decay (short bias)
Useful for deciding whether the environment suits option for long or short
🔹 IV-Based Background State
Background color reflects the implied volatility condition of Call and Put premiums:
🟥 Red → High IV on both Call & Put premiums
🟩 Green → Low IV on both Call & Put premiums
🟨 Yellow → IV imbalance (one side high, one side low)
This helps traders instantly recognize volatility regimes and traps.
How traders can use this
Identify premium expansion vs decay phases
Time straddle/strangle buying and selling
Avoid trades during unfavorable IV conditions
Understand whether the market favors volatility or compression
Use alongside spot price and key levels for better context
Best Use Cases
Intraday trading
Expiry day analysis
Volatility-based strategies
Suitable for both option buyers and sellers
Important Note
This indicator is a context and structure tool, not a buy/sell signal system.
It is designed to improve decision-making and risk awareness in options trading.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact VigneshPalanisamy directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
Disclaimer
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact VigneshPalanisamy directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.