Options Premium Decay (Paisa Algo)

Title: Options Premium Decay Analyzer [Paisa Algo]

Description:

This indicator is designed to analyze and visualize the intraday premium decay of option contracts for a specific underlying asset. By aggregating price changes across a user-defined range of strike prices, it provides a comprehensive view of how Call (CE) and Put (PE) premiums are eroding relative to the session open.

This tool is particularly useful for option sellers and traders looking to understand the aggregate behavior of premiums, identifying whether Calls or Puts are losing value faster at any given moment.

Key Features:

Aggregate Decay Visualization: Displays the cumulative price change (since the daily open) for a customized range of Call and Put strikes. The output is plotted as candles, allowing you to see the volatility and trend of premium decay.
Multi-Strike Logic: Instead of tracking a single contract, this script aggregates data from a user-defined range of strikes (Start Strike to End Strike), providing a broader market sentiment analysis.
ATM Decay Table: Includes an on-chart table that dynamically calculates and displays the specific decay values for the strikes nearest to the current At-The-Money (ATM) price.
Smart Caching System: Utilizes a custom caching mechanism to efficiently handle multiple request.security calls, ensuring stability and performance even when tracking multiple strikes.
Visual Signals:
Decay Cross: Marks points where the aggregate Call decay crosses the Put decay, potentially indicating a shift in momentum.
Below Zero: Highlights periods where both Call and Put premiums have dropped significantly below their opening values.
How to Use:

Symbol & Expiry: Enter the underlying symbol (e.g., NIFTY) and the specific Expiry Date for the contracts you wish to analyze.
Strike Configuration: Set the Start Strike and End Strike to cover the range you satisfy (e.g., 25900 to 26100) and specify the Strike Difference (e.g., 100).
Interpretation:
Green Candles represent the aggregate behavior of Call premiums.
Red Candles represent the aggregate behavior of Put premiums.
When the Green line is below the Red line, it generally indicates that Call premiums are decaying (losing value) faster than Puts options.
Disclaimer:

This tool is for educational and analytical purposes only. It does not provide financial advice, buy/sell signals, or guarantee profits. Option premiums are subject to various factors including volatility (IV), time to expiry (Theta), and underlying price movement (Delta). The data displayed depends on the availability of historical data for the specific option contracts provided by your data feed. Always perform your own analysis and risk management.