A custom TradingView indicator that analyzes options contracts by comparing the current underlying asset price to the option's strike price, visualizing in-the-money and out-of-the-money status.
Explore complementary indicator rolesHow it works
The script first validates the options symbol format by checking for a specific pattern containing the base stock symbol, expiration date, option type, and strike price. It then extracts these key components using string matching and substring functions.
Once the components are extracted, the script retrieves the current close price of the base symbol and calculates the price difference between the current price and the strike price. For call options, this difference shows how much the stock price is above or below the strike price, while for put options, the calculation is reversed to reflect the option's intrinsic value.
Why it may be useful
Options traders need quick visual confirmation of whether an option contract is currently profitable or not. This indicator provides an immediate, color-coded representation of an option's status relative to its strike price, helping traders make faster and more informed decisions.
By presenting the price difference in a graphical format with green and red color coding, the script allows traders to instantly understand whether an option is in-the-money (ITM) or out-of-the-money (OTM), which is crucial for assessing potential profitability and risk management in options trading strategies.
When to explore it
This indicator is most effective when analyzing individual options contracts before or during trading, particularly for traders who want a quick visual assessment of an option's current value. It works best with liquid options on stocks with high trading volume and clear price trends.
Traders should use this tool during market hours when real-time pricing is available, and it's especially useful for monitoring options near their expiration date or when considering entry and exit points for options trades. It provides a rapid, intuitive way to evaluate an option's potential profitability at a glance.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
