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OPTIONS GREEKS PROFESSIONAL DASHBOARD ANALYZEROPTIONS GREEKS’ PROFESSIONAL DASHBOARD ANALYZER (Study Material & Script Description) Overview The "Professional Options Greeks Analyzer" by aiTrendview.com is a comprehensive analytical tool developed using the Black-Scholes Option Pricing Model. It is designed to help traders, investors, and financial analysts measure and visualize the most important first-order Greeks — Delta, Gamma, Theta, Vega, and Rho — along with key metrics like option pricing, implied volatility (IV), break-even points, moneyness, expected move, and risk level. This dashboard is highly configurable and supports various expiry durations, volatility assumptions, and strike price selection modes, providing a deeply customizable yet intuitive user interface. ________________________________________ Core Logic and Calculation Model The tool is based on the Black-Scholes model, a well-known pricing method for European-style options. The model computes Call and Put prices using parameters such as current spot price (S), strike price (K), time to expiry (T), implied volatility (σ), and risk-free interest rate (r). The d1 and d2 components — central to Black-Scholes — are derived from logarithmic price ratios and volatility-adjusted time decay. From these, all major Greeks are calculated: • Delta: Measures the sensitivity of the option's price to the underlying asset's price. • Gamma: Indicates the rate of change in Delta relative to changes in the underlying. • Vega: Captures the sensitivity of the option's price to changes in implied volatility. • Theta: Reflects the rate at which the option loses value due to time decay. • Rho: Indicates the sensitivity to interest rate changes. These values are updated in real time and displayed in a tabular format with visual progress bars to help traders interpret values more effectively. ________________________________________ Customization & User Inputs The indicator allows users to adjust several key parameters to fit different trading scenarios: • Implied Volatility (IV) can be manually input (default 25%), allowing traders to model expected outcomes under their assumptions. • Strike Price Mode offers flexibility with "ATM" (At-the-Money) or "Custom" strike selection. • Expiry Selection includes 7D, 14D, 30D, 60D, and 90D periods, making the Greeks adaptive to different option durations. • Risk-Free Rate is configurable (default 4.5%) to reflect current economic conditions. The tool also computes realized volatility from price action over 30 bars, which is compared with implied volatility to calculate IV Rank, categorized as HIGH, MEDIUM, or LOW. This helps traders decide whether options are relatively expensive or cheap. ________________________________________ Visual Dashboard and Interpretation The dashboard is structured into five key rows: 1. Market Metrics: Asset name, spot price, selected strike, days to expiry, IV, IV Rank, trend over 1-day period, and moneyness (ITM/ATM/OTM). 2. Option Pricing: Call and Put prices, breakeven levels, time value components, expected move, and realized volatility. 3. Greeks: Displays Delta (with progress bar), Gamma, Vega, Theta (Call and Put), and visual interpretation. 4. Risk & Recommendation: Based on IV Rank and short-term trend, the script generates real-time suggestions (e.g., "BUY STRADDLES", "SELL CALL SPREADS"). 5. Visual Encoding: Each data point is color-coded — green for positive, red for negative, and gray for neutral — enhancing visual clarity. This layout not only provides transparency but also helps both novice and professional traders make quick and informed decisions. ________________________________________ Strategy Suggestions and Interpretation The script provides a status-based recommendation engine that suggests strategic action based on market conditions: • High IV & Rising Market: Suggests "SELL CALL SPREADS" • High IV & Falling Market: Suggests "SELL PUT SPREADS" • Low IV & Sideways Market: Suggests "BUY STRADDLES" • Unclear Condition: Suggests "MONITOR" Additionally, the risk level is determined by the Gamma value, which serves as a proxy for position sensitivity — categorized into HIGH, MEDIUM, or LOW. ________________________________________ Use Case and Trader Benefits This tool is especially beneficial for: • Options Traders analyzing multiple Greeks in real-time. • Volatility Strategists comparing implied and realized volatility. • Retail Investors evaluating premium pricing and moneyness quickly. • Portfolio Managers visualizing risk and hedging exposures. The real-time alert system, progress bars, and recommendation logic make it suitable for both manual trading and integration into automated strategies or alerts via webhook/notifications. ________________________________________ Practical Steps for Use 1. Load the script in TradingView’s Pine Script editor and apply it to your desired chart. 2. Choose your expiry duration and configure IV and strike price based on your trade thesis. 3. Observe the Greeks, pricing, IV Rank, and generated recommendations. 4. Use the dashboard to plan spreads, straddles, directional trades, or hedges accordingly. 5. Optionally, create alerts when IV Rank hits HIGH/LOW or when recommended strategies change. ________________________________________ Disclaimer by aiTrendview The "Professional Options Greeks Analyzer" and all tools or materials provided by aiTrendview.com are strictly intended for educational and informational purposes only. They are not investment advice, financial recommendations, or trading signals. Options trading involves substantial risk and may not be suitable for all investors. Past performance does not guarantee future returns. Users are solely responsible for their decisions and are advised to test strategies in simulation environments before applying them to live trading. Please consult a certified financial advisor or legal counsel before making any financial decisions.
Pine Script® indicator
by aiTrendview-Charting-System
MathSpecialFunctionsGammaLibrary "MathSpecialFunctionsGamma" Gamma Functions. GammaQ(index) Enumeration of the polynomial coefficients for the "GammaLn" approximation. Parameters: index : int, 0 => index => 10, index of coeficient. Returns: float GammaLn(z) Computes the logarithm of the Gamma function. Parameters: z : The argument of the gamma function. Returns: The logarithm of the gamma function. Gamma(z) Computes the Gamma function. Parameters: z : The argument of the gamma function. Returns: float, The logarithm of the gamma function. GammaLowerRegularized(a, x) Parameters: a : float, The argument for the gamma function. x : float, The upper integral limit. Returns: float, The lower incomplete gamma function. GammaUpperRegularized(a, x) Returns the upper incomplete regularized gamma function Parameters: a : float, The argument for the gamma function. x : float, The lower integral limit. Returns: float, The upper incomplete regularized gamma function. GammaUpperIncomplete(a, x) Returns the upper incomplete gamma function. Parameters: a : float, The argument for the gamma function. x : float, The lower integral limit. Returns: float, The upper incomplete gamma function. GammaLowerIncomplete(a, x) Parameters: a : float, The argument for the gamma function. x : float, The upper integral limit. Returns: float, The lower incomplete gamma function.
Pine Script® library
by RicardoSantos