OPEN-SOURCE SCRIPT
Stock Option Seller - Open Road
## 📌 Description — Open Road · Option Seller
**Open Road · Option Seller** is a structured decision-support indicator designed for **systematic option sellers** trading monthly credit spreads on large-cap Indian equities.
It converts price action, momentum, and volatility into a **clear, rules-based structure selection**:
* **Put Credit Spread**
* **Call Credit Spread**
* **Iron Condor**
* **Wait (no trade)**
The goal is simple:
Remove discretion and provide a **repeatable framework for directional and non-directional option selling**.
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## ⚙️ Core Logic
The system is built on a **multi-factor scoring model**:
### 1. Trend Engine (3-factor scoring)
* EMA positioning (20/50)
* Short-term consistency (last 5 closes vs EMA)
* 21-day momentum
This produces a **Trend Score (-3 to +3)**:
* +3 → Strong Bullish
* -3 → Strong Bearish
* Between → Neutral / Lean bias
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### 2. Market Condition Filters
* **RSI (14)**
* Identifies exhaustion and conflicts with trend
* **ADX (14)**
* Distinguishes trending vs range-bound environments
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### 3. Structure Selection Logic
* **Low trend / extreme RSI → Iron Condor**
* **Trend + clean RSI + ADX confirmation → Directional spreads**
* **Conflict → No trade (WAIT)**
This ensures trades are taken only when **market structure is aligned**.
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### 4. Strike & Risk Framework
* Uses **ATR-based wing sizing**
* Automatically rounds to practical strike intervals
* Provides **approximate strike suggestions** for:
* Short legs
* Hedge legs
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## 📊 Visual Panels
The indicator includes 4 diagnostic panels:
1. **EMA Distance Panel**
→ Measures price positioning vs trend
2. **RSI Panel**
→ Highlights overbought / oversold regimes
3. **ADX Panel (+DI / -DI)**
→ Identifies trend strength and direction
4. **Trend Score Histogram**
→ Clean visual representation of directional bias
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## 🧠 Signal Output
On the latest candle, the system displays a **decision panel** with:
* Trend classification
* Score (out of 3)
* RSI & ADX interpretation
* ATR + wing size
* Final structure recommendation
* Suggested strike levels
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## 🎯 Designed For
* Monthly option sellers
* Systematic traders (rule-based execution)
* Traders who want to avoid discretionary bias
* Large-cap equity option strategies
Best suited for:
**RELIANCE, HDFCBANK, TCS, SBIN, AXISBANK (Daily timeframe)**
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## ⚠️ Important Notes
* This is a **decision-support tool**, not a fully automated trading system
* Strike suggestions are **approximate** and should be validated with live option chain data
* Works best when combined with **risk management and position sizing discipline**
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## 🧩 Philosophy
Most option sellers fail not because of strategy, but because of **inconsistent structure selection**.
Open Road enforces:
* When to sell directionally
* When to stay neutral
* When to not trade
That alone removes a large part of edge erosion.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
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Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.