In this update, I have added real-time Gain/Loss calculations for credit spreads for open trades with expirations, and for simulated trades.
Included is a G/L chart along with the short strike option ticker. To display the SafeZone, set show_SafeZone to Yes in the script settings.
Ideally, the short strike resides inside the Safe Zone. Otherwise, the credit spread is at risk and it is time to watch the spread very closely. The safe rank will be less than 1.7 at that time.
It shows how the Safe Zone evolves over time with time decay. The deeper the short strike is in the zone, the safer the credit spread. Most of the decay happens in the last 1 to 2 hours before expiration.
The indicator will draw strike1 on the stock chart. To disable this indicator, type in a zero (0) for strike1. There is a Safety Ranking indicator available for the daily and weekly credit spreads as well.
Updated: 12-5-2021 - 11 traders - ? Ask for the free TOS Setup weblinks