Straddle/Strangle Premium with IV

This indicator visualizes combined Straddle or Strangle premium behavior as a single visual, helping traders understand straddle/strangle trend, volatility state, and directional bias in real time.



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.