Hello Super Traders,
Tracking the markets appears so simple but identifying the correct opportunity to trade is complex. Traders are often stuck at this stage. Infact, to identify & pick the right options contract for your strategy is even more challenging. There are many ways to do this. One can use a simple options chain or open interest bar graph or simply a chart. Others may run a rule-based comprehensive algorithm with complex data sets.
At Dhan, we have almost all the tools & features which help them identify & choose the correct instrument for trading. Few of those features that are used heavily by Super Traders on Dhan are:
- Advanced Options Chain (link, link)
- Live Market Scanner (link)
- Market Outlook based Strategy (link)
- Flash Trader (link)
- 15 Min Build Up (link)
- Multi Strike OI Graph (link)
- Multi Screen Charts (link)
To add-on in the above list, we are live with a completely new, unique & first-in-the-industry feature.
Introducing: Straddle Chain on Options Trader Web
This looks exactly like the options chain without any demarcation of calls & puts. Straddle is a combination of ATM Call & ATM Put. It is also called Jodi-Bhav or Joda. If you buy both the legs it is a Long Straddle and if you sell both the legs it is a Short Straddle. The sum total of the premium of both legs is the Straddle Price.
Extending the same concept to all strike prices, makes a Straddle Chain. The combination of Call & Put of the same strike price is plotted here on straddle chain with few more data points like Combined Greeks, Average Implied Volatility, Put-Call Ratio and Combined Open Interest.
So you may ask, can we make straddle from ITM or OTM options? No, the straddle is made only with the ATM options. We are using the same concept of Straddle for other strike prices and plotting it on table.
How is the Straddle Chain useful in trading?
Few traders just track the Straddle Price in the market. With this they figure out the overall market sentiment and play with the options decay. Straddle Chain is the feature where you can track and execute this strategy. Also if the market moves and you now want to adjust to your straddle, you can do it from the Straddle Chain with a simple one click. And to help you make better decisions, there are more data sets to support.
To navigate the Straddle Chain on the Dhan’s Options Trader on Web, click “Analyse” in the Top Menu bar. A drop down menu will open and select “Straddle Chain”.
Its use case may vary for traders & trading style. This is a small effort from our team to easen our traders’ lives by making it further easy to analyse markets.
Again, like many features launched in the past, this one is inspired from the suggestion by the traders from the Dhan community. We want to hear from you always, please let us know how Straddle Chain can be helpful for you and what else can be done to improvise on top of it.