Strategy to buy an option based on the price action of the actual stock

[Psiguy]

Is it possible to create a strategy that would look at the price action of the SPY and place an addorder for the nextOTM option when the SPY RSI goes below 30? i know i can get the nextOTM as a string but i'm not sure if i can place an order via addorder for the option if the strategy only see the symbol for the chart where the strategy is running, in this case the SPY.

 

[autolox]

Start without worrying about the option. The key would be if the intrinsic value of SPY is large enough to make trading the option worth it. If you haven't already, do some AddOrder() work with the SPY itself.

You didn't mention a timeframe, so, if it's too short of a timeframe, you may find the intrinsic value of the SPY might be too low for an OTM to perform as you may expect.