Petro-Lwa Strategy I · User Manual

The Long Volatility Straddle

Direction-neutral · Pre-break setup · Cheap-vol entry

What is this strategy?

A Long Straddle is the simplest way to bet on a big move without picking a direction. You buy one call (which wins if price rises) and one put (which wins if price falls) at the same strike price and the same expiry. The total premium you paid is the maximum you can lose. Once the asset moves far enough in either direction to cover the two premiums, you profit — and the profit potential is unlimited. Petro-Lwa arms this setup only when volatility is cheap, so the two options cost less and the explosion that follows pays more.

When does it trigger?

The Pine indicator PETRO-LWA-I.pine fires when all three of these conditions are true on the bar that just closed:

SignalDefault
IV Rank (realized-vol percentile vs. last 252 bars)< 35
Bollinger-Band-width squeeze (width < 50-bar avg)× 0.7
Trend is neutral (price not riding 50/200 EMAs in either direction)true

Translation: options are cheap, price is coiled, and nobody knows which way it breaks. Exactly the moment to own both wings.

1

Download the Pine script

Click the button below. Your browser saves a small text file called PETRO-LWA-I.pine to your Downloads folder. That file is the entire indicator — no installer, no account, no risk.

⬇ Download PETRO-LWA-I.pine
2

Install on TradingView

Open any chart on tradingview.com (BTC/USD or ETH/USD work best). Click Pine Editor at the bottom. Open your downloaded file, copy everything, paste it into the editor, click Save then Add to chart.

▼ Pine Editor TradingView //@version=6 indicator("PETRO-LWA I · Long Straddle") iv_rank = ... squeeze = bb_width < avg * 0.7 setup = iv_rank < 35 and squeeze ... label.new("🟣 I · STRADDLE") [Save] [Add to chart] CHART · BTCUSD 🟣 STRADDLE ARMED + ADD TO CHART
3

Read the chart label

When the setup fires, a purple label appears directly under the bar that armed the signal. The label tells you the strategy, that the volatility is cheap, and that you are in the calm before the break.

🟣 I · STRADDLE cheap vol · pre-break IV rank under 35 · BB squeezed · trend neutral BTC/USD · 1D
4

Set up the alert

Right-click the indicator on the chart, choose Add alert on PETRO·I. In the alert dialog, set the condition to “PETRO I · Long Straddle” and (optionally) paste the Lasirèn bridge URL into the Webhook URL box so the trade idea reaches your phone.

Create Alert CONDITION PETRO·I ▸ PETRO I · Long Straddle ▸ Once Per Bar Close WEBHOOK URL https://lasiren-bridge.cryptolwa.app/alert MESSAGE {{strategy}} {{ticker}} iv_rank {{plot}} CREATE
5

Execute the options trade on Deribit

On Deribit, open the BTC or ETH options board. Pick an expiry between 45 and 90 days out. Click the call closest to the current price (At-The-Money), then the put at the same strike. Buy one of each. The two premiums together should be roughly ≤ 8% of spot. Exit before theta (time decay) accelerates in the final two weeks.

DERIBIT · BTC-27DEC-OPTIONS SPOT: $100,000 · 45-90 DTE · IV Rank LOW CALLS PUTS STRIKE 2,80090k1,200 2,10095k2,000 ▶ BUY CALL · 4,200 100k ◀ ATM BUY PUT · 4,000 ◀ 1,900105k5,800 1,400110k7,900 TOTAL PREMIUM: ~8,200 USD · ~8% of spot · break-even ±8%

Risk profile

Max LossTotal Premium Paid
Max RewardUnlimited Either Way
Best MarketCoiled · Pre-Catalyst

When NOT to use this

  • IV rank is already high — you would be paying retail for fireworks the market already expects.
  • A strong trend is in force — one of your two options decays uselessly; pick a directional spread instead.
  • Inside the last two weeks to expiry — theta accelerates here and will eat the position alive even if price moves.

Plain-English glossary

CallThe right (not obligation) to buy at a chosen price by a chosen date. Wins on rallies.
PutThe right (not obligation) to sell at a chosen price by a chosen date. Wins on crashes.
ATM"At The Money" — strike sits exactly at the current spot price.
PremiumThe cash you pay (or receive) for the option contract.
IV RankToday's volatility on a 0-100 scale vs. the last 12 months. Low = cheap options.
BB SqueezeBollinger Bands narrowing — price coiled, big move likely.
ThetaThe daily cost of holding an option as it ages toward expiry.
DTE"Days To Expiry" — how many days until the option dies.