Spot the collapse in IVs of INDIACEM - Vol trader #optionstrading #nse
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11 ماه پیش
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Option traders generally tend to use implied volatility as a metric to gauge the amount of turbulence in an underlying. With reference to Nifty or F&O stocks in Indian markets, when implied volatility is on the higher side, the possibility of large swings is higher and hence option premia are pushed higher due to hedge demand, for portfolio stability.
Similarly, when implied volatility (IV) is lower, there is complacency and option premia are on the lower side, as hedge demand drops and is negligible. The mean reverting characteristic of implied volatility is empirically found and is useful for options trading strategy formulation.
Volatility when reaches an extreme, has tendency to revert to mean, when at the upper extreme or at lower extreme. How does one use this characteristic observed in varied underlying, like Nifty, BankNifty or F& O stocks in Indian markets.
Now short volatility or long volatility, how to approach these ideas, is a topic of discussion, in the video from Quantsapp.
This video helps you understand the above concepts and also establishes an approach on how Quantsapp Vol-trader tool helps you monetize volatility in options trading.
In this video:
00:00 Introduction: Discussion of example of IVs of INDIACEM
01:13 Understanding IV characteristics
03:07 Relationship between option premia and IVs
04:45 Volatility trading option strategies: An approach
06:33 Quantsapp vol trader | An answer to effective volatility trading
08:44 Closing remarks
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Signup here: https://web.quantsapp.com/?s=y
Download App: https://app.quantsapp.com/sr
#indiacements #nse #optionstrading #nifty #futuresandoptions #intraday #optionstrategies #quantsapp #indianstockmarket #nseintraday
Signup here: https://web.quantsapp.com/?s=y
Download App: https://app.quantsapp.com/sr
Option traders generally tend to use implied volatility as a metric to gauge the amount of turbulence in an underlying. With reference to Nifty or F&O stocks in Indian markets, when implied volatility is on the higher side, the possibility of large swings is higher and hence option premia are pushed higher due to hedge demand, for portfolio stability.
Similarly, when implied volatility (IV) is lower, there is complacency and option premia are on the lower side, as hedge demand drops and is negligible. The mean reverting characteristic of implied volatility is empirically found and is useful for options trading strategy formulation.
Volatility when reaches an extreme, has tendency to revert to mean, when at the upper extreme or at lower extreme. How does one use this characteristic observed in varied underlying, like Nifty, BankNifty or F& O stocks in Indian markets.
Now short volatility or long volatility, how to approach these ideas, is a topic of discussion, in the video from Quantsapp.
This video helps you understand the above concepts and also establishes an approach on how Quantsapp Vol-trader tool helps you monetize volatility in options trading.
In this video:
00:00 Introduction: Discussion of example of IVs of INDIACEM
01:13 Understanding IV characteristics
03:07 Relationship between option premia and IVs
04:45 Volatility trading option strategies: An approach
06:33 Quantsapp vol trader | An answer to effective volatility trading
08:44 Closing remarks
Get 20+ Free Option Trading Tools
Signup here: https://web.quantsapp.com/?s=y
Download App: https://app.quantsapp.com/sr
#indiacements #nse #optionstrading #nifty #futuresandoptions #intraday #optionstrategies #quantsapp #indianstockmarket #nseintraday
11 ماه پیش
در تاریخ 1402/06/13 منتشر شده
است.
685
بـار بازدید شده