Dr Shubh's BTC Pro-Vol & Volatility Edge Dashboard█ Overview
The BTC Pro-Vol & Volatility Edge Dashboard is a professional-grade analysis suite designed for crypto-options traders and volatility arbitrageurs. In the high-stakes world of Bitcoin options, price is only half the story; Volatility is the true driver of value.
This indicator quantifies the Volatility Risk Premium (VRP) —the spread between Implied Volatility (IV) and Realized Volatility (RV)—to determine if option premiums are overpriced or underpriced. It provides institutional-level clarity on when to harvest theta and when to hedge directional risk.
█ Core Mechanics
⚪ 1. The Volatility Risk Premium (VRP) Engine The heart of the indicator calculates the spread between:
Implied Volatility (IV) : Sourced via a dynamic proxy (BVOL/BTCDVOL), representing the market's forward-looking fear.
Realized Volatility (RV): A 20-day annualized standard deviation of log-returns, representing the actual physical movement of Bitcoin.
The Edge: When IV > RV, a positive "Volatility Risk Premium" exists, favoring the option seller.
⚪ 2. Adaptive Gamma Proximity Tracking Unlike standard indicators, this tool tracks your specific Short Strike Price. It calculates the mathematical distance between the current price and your "danger zone," providing real-time feedback on your "Delta" and "Gamma" exposure.
⚪ 3. Contextual Bar Coloring The chart environment adapts to the volatility regime:
🟢 Lime Bars: Indicate a high-VRP environment where time-decay (Theta) is working aggressively in your favor.
🔴 Red Bars: Indicate a "Volatility Breach" or strike-proximity warning, signaling that movement is outperforming the premium collected.
█ How to Use
🟢 Strategy: Premium Harvesting (Short Volatility) Deploy this when the Dashboard status shows " SELL PREM " and the VRP Edge is above 5%.
Logic: The market is paying a high "insurance premium" for movement that isn't actually happening.
Ideal for: Short Straddles, Short Strangles, and Iron Condors.
🔴 Strategy: Risk Management & Delta Hedging When the Dashboard status flips to " HEDGE " or the status box turns solid Red:
Logic : The "Gamma Risk" has become too high. Either the price is too close to your strike or Bitcoin's actual movement is "eating" your premium faster than time can decay it.
Action: Consider closing the tested side or using BTC Futures to neutralize your Delta.
💡 Pro Tip: Do not "chase" the last 10% of profit. If your sold options have lost 80-90% of their value, the risk-to-reward ratio for staying in the trade is mathematically poor.
█
Key Settings
IV Proxy Symbol: Defaulted to BVOL. Flexible input to ensure compatibility with various data feeds.
Short Strike Price: Manually input your specific "Sold" strike to enable the "TO STRIKE" tracking logic.
Display Settings: Fully dynamic table positioning and "Huge" text options for multi-monitor setups.
█ Disclaimer
The content provided in this script is for educational and informational purposes only. Options trading involves substantial risk of loss and is not suitable for all investors. The "Pro-Vol" indicator utilizes statistical models that may not account for "Black Swan" events or sudden liquidity gaps.
I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on this information. Past performance of volatility spreads is not indicative of future results. Trade at your own risk.
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