What is the Premium Based selection type in the Option JSON Bridge?
-
-
In the Premium Based selection type, you do not manually choose an option contract. Instead, you enter your desired premium, and the platform automatically searches the option chain for the contract whose premium is closest to that value.
You will also see a setting called Max Variation. This defines how far above or below your target premium the platform is allowed to search while looking for the closest matching option.
For example, suppose you enter:
-Target Premium = ₹100
-Max Variation = ₹20
Assume the option chain is:
-22400 CE → ₹135
-22450 CE → ₹112
-22500 CE → ₹98
-22550 CE → ₹75
Since ₹98 is the closest premium to ₹100, the platform will automatically select 22500 CE, and that contract will be used in the generated JSON.
This selection type is useful when your strategy is based on the option premium rather than a fixed strike price.
(Refer to the image below for the Premium Based configuration.)
