Support and Resistance levels from Options Data

The Support and Resistance levels from Options Data indicator visualizes critical market levels derived from external options chain data, including Put/Call walls, Gamma Flip points, and Vanna levels. This tool helps traders identify potential price magnetism, reversals, or breakouts by integrating options market dynamics directly onto TradingView charts.

Usage

This script relies on pre-calculated options data provided via a custom data string input. Once the string is pasted, the indicator overlays various levels that serve as dynamic support and resistance.

• Put Wall (Gamma Support): Represents the strike below the price with the highest put gamma. It acts as a price magnet where market makers typically buy to hedge, providing support.
• Call Wall (Gamma Resistance): The strike above the price with the highest call gamma. Market maker hedging here often creates selling pressure, acting as resistance.
• Gamma Flip: The price level where net dealer gamma exposure changes sign. Trading above this level is generally considered a lower volatility environment, while trading below it can lead to increased volatility.
• Vanna Levels: Indicates sensitivity to implied volatility changes. Crossing these levels may signal shifts in market regimes.
• Implied Move: A box visualizes the expected price range based on ATM implied volatility, helping traders identify overextended price action.

Details

Since Pine Script cannot fetch real-time external options chains directly due to platform security sandboxing, this indicator uses a data-parsing architecture. Users obtain a formatted string containing computed metrics (based on Black-Scholes formulas and Open Interest) from external sources and paste it into the script.

The script then extracts:

• S1/R1: Strikes with high combined Open Interest (80%) and Volume (20%).
• Stop Loss: A dynamic level set below the lowest support, adjusted by current Implied Volatility (IV).
• Activity Levels: Metrics showing average contracts per unique strike to gauge the strength of the levels.

Settings

Data

• Custom Level Data: The input field for the formatted options data string.

Visibility

• Show Short-term (st) Walls: Toggles the display of gamma walls for near-term expirations.
• Show Previous Walls: Displays historical Put/Call walls for comparison.
• Show Vanna Levels: Toggles the visualization of positive and negative Vanna strikes.
• Show Suggested Stop Loss Level: Displays a calculated stop-loss based on support and IV.
• Show Fibonacci Target: Projects a 1.618 extension from the Put Wall to the Call Wall range.

Style

• Line Style: Choose between Solid, Dashed, or Dotted lines.
• Colors: Customizable colors for Support, Resistance, Gamma Flip, and Vanna levels.
• Label Size: Adjusts the size of the text labels on the chart.

FAQ

How do I get the data string for the indicator? The data string is generated using external financial APIs or scripts that process options chains. You can use specific bots or web tools designed for this script to fetch real-time data for various tickers.

Why aren't the levels updating automatically? TradingView limits direct internet access for security. Therefore, data must be manually updated by pasting a new string into the settings to ensure the levels reflect the latest options market dynamics.

How do I access Support and Resistance levels from Options Data? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.