Straddle Charts: The Hidden View
Most traders look at Spot chart or CE/PE charts separately. The Straddle chart combines them.
What is a Straddle Chart?
It is the sum of ATM Call Price + ATM Put Price.
Value = CE Premium + PE Premium
Why Watch It?
The Straddle price tells you the Total Premium remaining in the market.
1. Non-Directional Decay
If the market is sideways, both CE and PE lose value. The Straddle chart goes DOWN. This confirms an Option Seller's market.
2. Before a Big Move
Often, before a massive breakout, the Straddle price stops falling and starts rising (IV spike + Gamma). If Straddle chart makes a higher low while Spot is flat, get ready for a blast.
AlgoStraddle Feature
We perform this calculation automatically for you in the bottom panel of the dashboard. Use it to gauge if today is a "Trending Day" or a "decay Day".
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
Standard Disclosure: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content provided here is for educational purposes only and does not constitute financial or investment advice. AlgoStraddle Academy is not a SEBI registered investment advisor. Trading options involves high risk and capital can be lost.