OPEN-SOURCE SCRIPT
Aggiornato Options Positioning Oscillator
Options Positioning Oscillator
What it does
The Options Positioning Oscillator is a single bounded line, scaled in standard-deviation (σ) units, that reads where derivatives positioning is leaning — risk-on (bullish) versus risk-off / hedged (bearish).
Most oscillators read price (RSI, Stochastic, MACD, etc.). This one deliberately does not. It reads the implied-volatility and futures-basis structure that sits underneath price, because hedging and positioning leave their footprint in the volatility surface and the cash-and-carry basis before they fully show up in price momentum. The output is one easy-to-read line with σ-banded extremes, so you can see at a glance whether positioning is neutral, leaning, or stretched.
Why these components are combined (mashup rationale)
This is not a bundle of unrelated indicators stacked for the sake of it. The three core legs are complementary, research-documented measurements of the same underlying quantity — the price of variance risk and the market's appetite for risk:
Implied-Volatility Rank — the level of implied vol within its own range (where fear sits historically).
Volatility Term-Structure — implied vol versus its own trend (the slope: calm/contango vs stressed/backwardation).
Futures Basis — the cash-and-carry premium or discount (demand and carry vs hedging pressure).
Each leg, on its own, is a noisy proxy for risk appetite. The academic literature shows each carries genuine information: implied volatility systematically exceeds subsequent realized volatility, producing a variance risk premium (Bakshi & Kapadia 2003; Carr & Wu 2009), and the shape/slope of the volatility term structure carries information about the price of variance risk that predicts volatility-asset returns incrementally to other proxies (Johnson 2017). Combining several noisy-but-informative proxies of one latent variable, on a common standardized scale, denoises any single proxy — a textbook signal-combination, which is exactly why the mashup is justified rather than arbitrary.
Two optional legs — Put-Call Ratio and Option Skew — extend the read for users who can supply that data as an external series. They are off by default because TradingView cannot natively pull live option-chain data; turning them on without a real source would feed price in their place, which would be wrong. The composite automatically re-balances around whatever legs are active.
How the components work together
Every leg is converted to a z-score on its native timeframe so they share one scale (the volatility legs are measured on a stable Daily timeframe by default, so "IV-rank" means the same thing whether you run a 5-minute or daily chart). The legs are sign-aligned so that up = bullish lean in every case:
high implied-vol level → bearish (subtracted)
steep/stressed term slope → bearish (subtracted)
premium futures basis → bullish (added)
They are then combined as a weighted average and lightly smoothed. The result is one line where positive = crowd leaning bullish/risk-on, negative = leaning bearish/hedged, and the dotted Extreme bands flag stretched positioning prone to mean-reversion.
How to use it
Read the level, not only the crosses. Above the +Lean band = bullish lean; below the −Lean band = bearish/hedged lean; beyond the dotted Extreme bands = stretched.
Turns out of an extreme (the triangles) are the actionable events — positioning unwinding from a stretched state.
Divergences (circles) warn when price and positioning disagree — e.g. price makes a higher high while positioning makes a lower high.
Read the EDGE row. The dashboard runs a live forward-return harness: for each turn it checks whether a favourable move (≥ k×ATR within the horizon) actually occurred, and compares that Hit % against the unconditional Base %. EDGE = Hit − Base is the only honest measure of whether the signal is doing anything on your instrument. If EDGE is near zero, the signal is not adding information on that market/timeframe — and the script tells you so.
Why it is original
It is not a re-skinned price oscillator. It is an options/volatility-native positioning gauge that (a) fuses the implied-vol level, term-structure slope, and futures basis into one standardized composite, (b) measures the volatility legs on a stable higher timeframe so the read is timeframe-consistent, and (c) ships with a built-in forward-return calibration harness that reports its own live edge instead of asking you to trust it. I am not aware of a published TradingView oscillator that combines these specific volatility-structure components with self-calibration.
Settings guide
01 · Data Sources — Cash, Futures and Implied-Vol-Index symbols (default NIFTY / NSE; change for any market), the timeframe for the volatility legs (default Daily), and a universal price source.
02 · Engine — IV-rank lookback, term mean length, normalization window, output smoothing.
03 · Component Weights — weight each leg; set a leg to 0 to drop it. Optional PCR / Skew legs (off by default; require external data).
04 · Calibration — horizon, favourable-move threshold (×ATR), base-rate window.
05 · Bands — Lean and Extreme σ bands; divergence pivot.
06 · Display & Theme — visual style (gradient area + glow / histogram / line), background regime tint, dashboard, colors.
Non-repaint
The volatility legs are requested with lookahead_off and settle on their bar's close — there is no future leak. Higher-timeframe values develop through the forming bar and confirm at its close, which is standard, intended behaviour.
Concept credit
Variance risk premium and its predictive content — Bakshi & Kapadia (2003); Carr & Wu (2009); Bollerslev, Tauchen & Zhou (2009).
Volatility term-structure slope and return predictability — Johnson, Risk Premia and the VIX Term Structure (2017).
Cash-and-carry futures basis — standard cost-of-carry theory.
Implied-volatility rank / percentile — established options-desk practice.
Disclaimer
For research and education only. This script is not financial advice, not a recommendation, and not a guarantee of future results. All statistics shown are in-sample, close-to-close, and exclude costs and slippage — a study aid, not a backtest. Do your own research and manage your own risk.
What it does
The Options Positioning Oscillator is a single bounded line, scaled in standard-deviation (σ) units, that reads where derivatives positioning is leaning — risk-on (bullish) versus risk-off / hedged (bearish).
Most oscillators read price (RSI, Stochastic, MACD, etc.). This one deliberately does not. It reads the implied-volatility and futures-basis structure that sits underneath price, because hedging and positioning leave their footprint in the volatility surface and the cash-and-carry basis before they fully show up in price momentum. The output is one easy-to-read line with σ-banded extremes, so you can see at a glance whether positioning is neutral, leaning, or stretched.
Why these components are combined (mashup rationale)
This is not a bundle of unrelated indicators stacked for the sake of it. The three core legs are complementary, research-documented measurements of the same underlying quantity — the price of variance risk and the market's appetite for risk:
Implied-Volatility Rank — the level of implied vol within its own range (where fear sits historically).
Volatility Term-Structure — implied vol versus its own trend (the slope: calm/contango vs stressed/backwardation).
Futures Basis — the cash-and-carry premium or discount (demand and carry vs hedging pressure).
Each leg, on its own, is a noisy proxy for risk appetite. The academic literature shows each carries genuine information: implied volatility systematically exceeds subsequent realized volatility, producing a variance risk premium (Bakshi & Kapadia 2003; Carr & Wu 2009), and the shape/slope of the volatility term structure carries information about the price of variance risk that predicts volatility-asset returns incrementally to other proxies (Johnson 2017). Combining several noisy-but-informative proxies of one latent variable, on a common standardized scale, denoises any single proxy — a textbook signal-combination, which is exactly why the mashup is justified rather than arbitrary.
Two optional legs — Put-Call Ratio and Option Skew — extend the read for users who can supply that data as an external series. They are off by default because TradingView cannot natively pull live option-chain data; turning them on without a real source would feed price in their place, which would be wrong. The composite automatically re-balances around whatever legs are active.
How the components work together
Every leg is converted to a z-score on its native timeframe so they share one scale (the volatility legs are measured on a stable Daily timeframe by default, so "IV-rank" means the same thing whether you run a 5-minute or daily chart). The legs are sign-aligned so that up = bullish lean in every case:
high implied-vol level → bearish (subtracted)
steep/stressed term slope → bearish (subtracted)
premium futures basis → bullish (added)
They are then combined as a weighted average and lightly smoothed. The result is one line where positive = crowd leaning bullish/risk-on, negative = leaning bearish/hedged, and the dotted Extreme bands flag stretched positioning prone to mean-reversion.
How to use it
Read the level, not only the crosses. Above the +Lean band = bullish lean; below the −Lean band = bearish/hedged lean; beyond the dotted Extreme bands = stretched.
Turns out of an extreme (the triangles) are the actionable events — positioning unwinding from a stretched state.
Divergences (circles) warn when price and positioning disagree — e.g. price makes a higher high while positioning makes a lower high.
Read the EDGE row. The dashboard runs a live forward-return harness: for each turn it checks whether a favourable move (≥ k×ATR within the horizon) actually occurred, and compares that Hit % against the unconditional Base %. EDGE = Hit − Base is the only honest measure of whether the signal is doing anything on your instrument. If EDGE is near zero, the signal is not adding information on that market/timeframe — and the script tells you so.
Why it is original
It is not a re-skinned price oscillator. It is an options/volatility-native positioning gauge that (a) fuses the implied-vol level, term-structure slope, and futures basis into one standardized composite, (b) measures the volatility legs on a stable higher timeframe so the read is timeframe-consistent, and (c) ships with a built-in forward-return calibration harness that reports its own live edge instead of asking you to trust it. I am not aware of a published TradingView oscillator that combines these specific volatility-structure components with self-calibration.
Settings guide
01 · Data Sources — Cash, Futures and Implied-Vol-Index symbols (default NIFTY / NSE; change for any market), the timeframe for the volatility legs (default Daily), and a universal price source.
02 · Engine — IV-rank lookback, term mean length, normalization window, output smoothing.
03 · Component Weights — weight each leg; set a leg to 0 to drop it. Optional PCR / Skew legs (off by default; require external data).
04 · Calibration — horizon, favourable-move threshold (×ATR), base-rate window.
05 · Bands — Lean and Extreme σ bands; divergence pivot.
06 · Display & Theme — visual style (gradient area + glow / histogram / line), background regime tint, dashboard, colors.
Non-repaint
The volatility legs are requested with lookahead_off and settle on their bar's close — there is no future leak. Higher-timeframe values develop through the forming bar and confirm at its close, which is standard, intended behaviour.
Concept credit
Variance risk premium and its predictive content — Bakshi & Kapadia (2003); Carr & Wu (2009); Bollerslev, Tauchen & Zhou (2009).
Volatility term-structure slope and return predictability — Johnson, Risk Premia and the VIX Term Structure (2017).
Cash-and-carry futures basis — standard cost-of-carry theory.
Implied-volatility rank / percentile — established options-desk practice.
Disclaimer
For research and education only. This script is not financial advice, not a recommendation, and not a guarantee of future results. All statistics shown are in-sample, close-to-close, and exclude costs and slippage — a study aid, not a backtest. Do your own research and manage your own risk.
Note di rilascio
Options Positioning Oscillator (short name: Options Positioning)New in this update — leg agreement. The composite blends several standardized positioning legs (implied-vol level, volatility term-structure, futures basis, and optional put-call / skew legs). The dashboard now shows how many of those legs agree with the composite's direction (e.g. 3/3), turning the multi-leg blend into a readable confluence gauge: a lean backed by all legs is sturdier than one driven by a single noisy proxy.
New dashboard rows: Leg agreement, Edge floor.
New exports: EXP_Bias, EXP_IVrank, EXP_Term, EXP_Basis, EXP_LegAgree, EXP_Edge, EXP_EdgeLB, EXP_RunsZ.
Honest note: a descriptive positioning gauge, not a directional guarantee. Legs you cannot source can be weighted to zero; the composite re-balances.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.