We are excited to announce the addition of the Auto ATM Straddle Chart on Sensibull. This chart helps you track the price movement of At-The-Money (ATM) straddles with respect to market movements.
How does it work?
For example, let us assume that at 9.15 AM the NIFTY Futures is trading at 17990, so the nearest strike i.e. ATM Strike will be 18000. The price shown in the chart at 9:15 AM is hence that of the 18000CE and 18000PE straddle.
At 10:00 AM, the futures jumps to 18040, the nearest strike, i.e. ATM strike is at 18050. The price shown in the chart from 10:00 AM will be that of the 18050CE and 18050PE straddle.
The chart will retain and show 18000 straddle between 9:15 AM and 10:00 AM when the ATM strike was 18000. So the chart shows 18000’s straddle price for the time when ATM was 18000, and switches to 18050’s straddle price for the time when ATM was 18050.
In other words, if the ATM strike changes, the chart starts to track the price of the new ATM Straddle from that moment on. It continues showing the price of the previous ATM straddle till that time.
The utility of this chart is to track any spikes or falls in straddle prices.
In this chart, the ATM strike is calculated using the futures price of an underlying, if there is a futures available for the specified expiry. If a futures is not available, we base it on the theoretical weekly futures computed for that expiry.
Where do I access it?
You can access this chart from two places:
1. Live Options Charts
Open the Analyse tab and click on Live Options Charts, The Auto ATM Straddle Chart is the first chart on the feature.
2. Multi Straddle-Strangle Charts
Open the Analyse tab and click on Multi Straddle-Strangle Charts. Click on the “Add Strategy” button and select “Auto” from the leg picker pop-up. The Auto ATM Straddle Chart is then added.