Option Time Value

hace 17 horas

This TradingView script calculates and visualizes the time value of an option (Call or Put) based on its market price and intrinsic value. The time value represents the premium paid for the option above its intrinsic value, and it is a key metric for analyzing the cost of holding an option.

This script is suitable for traders analyzing options on indices or stocks, such as the NIFTY 50, and supports both Call and Put options. By dynamically extracting the strike price and option type from the input symbol, it adapts seamlessly to the selected instrument.

Key Features:
Dynamic Instrument Selection:

Users can input the underlying asset (e.g., NSE:NIFTY) and the specific option instrument (e.g., NSE:NIFTY250327C24000 for a Call or NSE:NIFTY250327P24000 for a Put).
Automatic Option Type Detection:

The script detects whether the option is a Call or a Put by parsing the input symbol for the characters "C" (Call) or "P" (Put).
Dynamic Strike Price Extraction:

The strike price is dynamically extracted from the input option symbol, eliminating the need for hardcoding and reducing user errors.
Key Metrics Plotted:

Time Value: The premium paid above the intrinsic value, plotted in blue.
Intrinsic Value: The calculated intrinsic value of the option, plotted in green.
Seamless Integration:

Designed for ease of use and integration into existing TradingView setups.
Automatically adjusts to the timeframe and pricing data of the selected instruments.