ATR-Based Option Premium Selling with Trend and Session Filters
Summary
OptSeller is a Pine Script strategy that derives hypothetical call and put strike levels from a central price reference. The reference is VWAP by default, with an EMA alternative; ATR sets the distance to each level, and the levels are rounded to a selected strike increment. When price touches a level, the script can open a short call-side position or a long put-side position, subject to session, RSI, daily trade-count, and optional SuperTrend conditions.
The strategy defines percentage-based stop and target thresholds, limits trades per day, and closes positions near the end of the configured Indian market session. Its settings also specify commissions, slippage, and capital assumptions. The supplied excerpt does not identify an underlying, provide backtest dates, or show performance results, and it is incomplete. Although the title implies option selling, the code uses generic strategy orders on the chart instrument; actual option contracts, premiums, payoff behavior, and execution are not modeled in the visible portion. The thresholds and filters therefore require validation against the intended options market.
Key ideas
- ATR offsets around VWAP or an EMA define rounded call and put reference levels.
- Price touching either level can trigger a side-specific trade if the enabled filters pass.
- RSI, SuperTrend, session hours, and a daily trade cap are configurable entry constraints.
- Percentage stops and targets and an end-of-day close are included in the visible code.
- The excerpt supplies no performance evidence and does not visibly model actual option contracts or premiums.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.