Nifty Volatility Index is commonly referred as VIX or VI. From the Bid and Ask prices of Option contracts of NIFTY, VIX is defined. It is expected to have VIX under control or low as possible.
If the volatility is high then the prediction or assumption is very hard and it might result in loss. Hence the Nifty VIX is expected to be between 20 to 25.
Over the past decades, this volatility is under control, on an exceptional note VIX has gone above 80 during the Corona Virus period (March 2020 - April 2020).
If the volatility is high then the prediction or assumption is very hard and it might result in loss. Hence the Nifty VIX is expected to be between 20 to 25.
Over the past decades, this volatility is under control, on an exceptional note VIX has gone above 80 during the Corona Virus period (March 2020 - April 2020).
The Strategies (Strangle &Straddle) will work and give profits only during the low VIX. If the VIX is high, then the loss will be very huge (it may even eat your capital).
Best Regards,
B G Nareshkumar
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