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Home Forums General Questions How to find strike gap for a stock/index dynamically in options trading ?

How to find strike gap for a stock/index dynamically in options trading ?

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    • πŸ“ Question Details

      So while working on dynamic strike selection (ATM/ITM/OTM) in my sma cross over algo, but I am stuck on strike gap.

      Right now I am hardcoding values like 50 for NIFTY and 100 for BANKNIFTY, but I want to make it dynamic for any stock.

      Is there a way to calculate strike gap from data instead of hardcoding it?

    • Yes, so there’s no direct API that gives you β€œstrike gap”.

      The one way to do that calculate it from available strikes from the any source like script master file.

      So, the simple idea is Strike gap = difference between consecutive strikes

      Can understand with simple steps:

      Fetch option chain / instruments
      Take available strikes
      Sort them
      Find difference
      Can also refer below code:

      def get_strike_gap(strikes):
          strikes = sorted(set(strikes))
          if len(strikes) < 2:
              return None
          gaps = [strikes[i+1] - strikes[i] for i in range(len(strikes)-1)]
          # Most common gap
          gap = min(gaps)
          return gap
      
      # Sample - Inplace of this have the stricks from instrument/option chain
      strikes = [19800, 19850, 19900, 19950, 20000]
      
      gap = get_strike_gap(strikes)
      print("Strike Gap:", gap)
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