INDIA VIX - OPTION SELLERS BEWARE
Volatility is back in the markets after a while and does not look like it will cool off anytime soon.
Another series of spikes is expected which can take INDIA VIX to 25.
Weekly chart of the volatility index shows the range between 16-25 for coming months.
High VIX = Inflated premiums on option contracts.
For beginners,
India VIX is a volatility index which measures market expectations of near term volatility.
It indicates the investor's perceptions of the market volatility in near term and is based on Nifty OTM options. Higher the India VIX values, higher the expected volatility and vice-versa.
As the volatility index rises, one should become careful as the market can steeply move into either direction
- Animesh Vashisht
Another series of spikes is expected which can take INDIA VIX to 25.
Weekly chart of the volatility index shows the range between 16-25 for coming months.
High VIX = Inflated premiums on option contracts.
For beginners,
India VIX is a volatility index which measures market expectations of near term volatility.
It indicates the investor's perceptions of the market volatility in near term and is based on Nifty OTM options. Higher the India VIX values, higher the expected volatility and vice-versa.
As the volatility index rises, one should become careful as the market can steeply move into either direction
- Animesh Vashisht
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