Intellxis Premium Insight

20 Ogo

Understanding the Intellxis - Premium Insight Indicator

This guide provides a way to understand the output of the Premium Insight plugin for TradingView. Its core feature is the "Premium Status" column, which analyzes how an option's premium behaves relative to the underlying asset's price. Use the below guide to decode every status message and leverage this powerful plugin in your trading.

Call Option Statuses

1. Strong (Spot 🡅): [Ideal Behavior] The Call premium is increasing as the underlying asset price rises. This confirms a bullish trend and indicates the option is behaving as expected.
   
   
2. Down (Spot 🡇): [Expected Behavior] The Call premium is decreasing as the underlying asset price falls. This is the normal, expected behavior for a call option in a downtrend.
   
   
3. Down (Spot ⟷): [Time Decay (Theta)] The Call premium is decreasing while the underlying asset price is flat. This erosion of value is due to the passage of time and is an expected behavior.
   
   
4. Weak (Spot 🡅): [Unusual Weakness] The Call premium is decreasing slightly even though the underlying asset price is rising. This is an anomaly and suggests weakness in the bullish move.
   
   
5. Flat (Spot 🡅): [Unusual Stall] The Call premium is not changing despite a rise in the underlying asset price. This indicates the premium is not responding to a favorable move, which is a sign of weakness.
   
   
6. Strong (Spot 🡇): [Unusual Strength] The Call premium is increasing even though the underlying asset price is falling. This is a highly counter-intuitive signal and could point to a sharp increase in implied volatility.
   
   
7. MELTDOWN (Spot 🡅): [Critical Anomaly] The Call premium is collapsing significantly while the underlying asset price is RISING. This contradicts normal option behavior and may signal an imminent reversal or volatility crush.
   
   
8. MELTDOWN (Spot ⟷): [Critical Anomaly] The Call premium is collapsing significantly while the underlying is flat. This suggests a massive drop in implied volatility or other strong selling pressure not related to price direction.
   
   
9. Down Significantly (Spot 🡇): [Expected Behavior] The Call premium is dropping significantly as the underlying spot price is moving down.
   
   
10. Up (Spot ⟷): [Unusual] The Call premium is increasing while the underlying spot price is flat. This is likely due to a sudden increase in volatility.
    
    
11. Flat (Spot ⟷): Normal: The Call premium is flat and the underlying spot price is also flat.
    

Put Option Statuses

1. Strong (Spot 🡇): [Ideal Behavior] The Put premium is increasing as the underlying asset price falls. This confirms a bearish trend and indicates the option is behaving as expected.
   
   
2. Down (Spot 🡅): [Expected Behavior] The Put premium is decreasing as the underlying asset price rises. This is the normal, expected behavior for a put option in an uptrend.
   
   
3. Down (Spot ⟷): [Time Decay (Theta)] The Put premium is decreasing while the underlying asset price is flat. This erosion of value is due to the passage of time and is an expected behavior.
   
   
4. Weak (Spot 🡇): [Unusual Weakness] The Put premium is dropping slightly even though the underlying asset price is falling. This is an anomaly and suggests weakness in the bearish move.
   
   
5. Flat (Spot 🡇): [Unusual Stall] The Put premium is not changing despite a fall in the underlying asset price. This indicates the premium is not responding to a favorable move, which is a sign of weakness.
   
   
6. Strong (Spot 🡅): [Unusual Strength] The Put premium is increasing even though the underlying asset price is rising. This is a highly counter-intuitive signal and could point to a sharp increase in implied volatility.
   
   
7. MELTDOWN (Spot 🡇): [Critical Anomaly] The Put premium is collapsing significantly while the underlying asset price is FALLING. This contradicts normal option behavior and may signal an imminent reversal or volatility crush.
   
   
8. MELTDOWN (Spot ⟷): [Critical Anomaly] The Put premium is collapsing significantly while the underlying is flat. This suggests a massive drop in implied volatility or other strong selling pressure not related to price direction.
   
   
9. Down Significantly (Spot 🡅): [Expected Behavior] The Put premium is dropping significantly as the underlying spot price is moving up.
   
   
10. Up (Spot ⟷): [Unusual] The Put premium is increasing while the underlying spot price is flat. This is likely due to a sudden increase in volatility.
    
    
11. Flat (Spot ⟷): [Normal] The Put premium is flat and the underlying spot price is also flat.
    

kelmarin

Nota Keluaran

Premium Insight: A Real-Time Options Premium Analyzer

The Premium Insight plugin is a powerful indicator for Option Chain, designed to give you a clear, instant view of option premium dynamics. Unlike a standard options chain, this indicator actively analyzes how a Call or Put option's premium is behaving in relation to its underlying asset's price, providing actionable insights directly on your chart.

How It Works:
The indicator synthesizes data from key technical indicators to categorize premium movements with simple, color-coded messages. By comparing the premium's rate of change, relative strength, and other metrics against the underlying's price action, it gives you a precise status:

Green (Ideal/Expected Behavior): Signals like "Strong" or "Down" confirm that the premium is moving as expected with the underlying asset's price, helping you validate your trend analysis.

Yellow (Unusual Behavior): Signals like "Weak" or "Flat" highlight anomalies where the premium is not responding as it should to the underlying's movement, suggesting potential lack of conviction in the trend.

Red (Critical Anomaly): The unique "MELTDOWN" signal is a proprietary alert that detects when an option's premium is collapsing significantly against its expected direction (e.g., a Call premium dropping sharply while the spot price is rising). This is a critical warning of a potential trend reversal or a volatility crush (Vega crush), a powerful insight that sets this script apart.

How to Use It:
Traders can use these signals to:

Confirm Trends: A "Strong" signal provides confidence in your existing bullish or bearish view.

Spot Reversals: A "MELTDOWN" alert can be an early warning to exit positions or prepare for a counter-trend move.

Analyze Time Decay: A "Down" signal when the underlying is flat points to time decay (Theta), which is valuable for strategies like option selling.

Important Note: This plugin is currently designed and optimized for use exclusively within the Indian stock market (NSE, BSE).