OPEN-SOURCE SCRIPT
ATR% Credit Spread Strike Guide
This indicator helps options traders quickly estimate the **nearest reasonable short strike area** for a credit spread using an **ATR-based distance model**.
It calculates the stock’s current **ATR%** and applies a user-defined multiple, then plots horizontal reference levels from the current price:
* **Lower Min Price** for the put side, useful when evaluating **bull put spreads**
* **Upper Min Price** for the call side, useful when evaluating **bear call spreads**
The goal is simple: instead of using a flat percentage for every stock, this tool adjusts the minimum strike distance based on the stock’s recent daily movement.
### How it works
* Uses **ATR over a selectable lookback period** (default: 20)
* Converts that movement into a percentage of price
* Applies a selectable **ATR% multiple** (1x to 4x, default: 3x)
* Draws a **horizontal line** at the current upper and/or lower threshold
* Optional labels show:
* ATR%
* Total distance %
* Current level price
### Why use it
A flat 5% rule can be too tight for volatile names and too wide for calmer names. This script gives a faster way to visualize a volatility-adjusted threshold before checking the actual option chain.
### Practical use
* Use the plotted level as the **closest strike area worth considering**
* Then confirm:
* option premium is acceptable
* return on risk meets your plan
* the strike still makes sense relative to expected move, trend, and support/resistance
### Important note
This is a **charting aid**, not a trade signal. It does not account for implied volatility, expected move, liquidity, earnings risk, assignment risk, or probability of touch. Always confirm with the option chain
It calculates the stock’s current **ATR%** and applies a user-defined multiple, then plots horizontal reference levels from the current price:
* **Lower Min Price** for the put side, useful when evaluating **bull put spreads**
* **Upper Min Price** for the call side, useful when evaluating **bear call spreads**
The goal is simple: instead of using a flat percentage for every stock, this tool adjusts the minimum strike distance based on the stock’s recent daily movement.
### How it works
* Uses **ATR over a selectable lookback period** (default: 20)
* Converts that movement into a percentage of price
* Applies a selectable **ATR% multiple** (1x to 4x, default: 3x)
* Draws a **horizontal line** at the current upper and/or lower threshold
* Optional labels show:
* ATR%
* Total distance %
* Current level price
### Why use it
A flat 5% rule can be too tight for volatile names and too wide for calmer names. This script gives a faster way to visualize a volatility-adjusted threshold before checking the actual option chain.
### Practical use
* Use the plotted level as the **closest strike area worth considering**
* Then confirm:
* option premium is acceptable
* return on risk meets your plan
* the strike still makes sense relative to expected move, trend, and support/resistance
### Important note
This is a **charting aid**, not a trade signal. It does not account for implied volatility, expected move, liquidity, earnings risk, assignment risk, or probability of touch. Always confirm with the option chain
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
Difficult Takes a day, Impossible Takes a Week!
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
Difficult Takes a day, Impossible Takes a Week!
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。