Please someone explain about vix…
Thnks
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Simpler terms it’s Volatility Index of Nifty
Volatility is the range of price movement. Historical Volatility informs us about the price movement that has occurred in past timeframe (usually a year) and implied volatility informs us the expected price movement in near future…
It is one of the most important number for option traders as Vix corresponds to implied or expected volatility in Nifty values (on either side i.e. up or down) in next 1 yr from the date…
In times of uncertainty like elections, RBI policy meetings, war or any others anxious events vix rises causing options premiums to swell. Low vix (no. Lower than historical volatility) is ideal time to buy options and High vix is good time to sell…
U can refer this
Historical annualised volatility
Compare it with vix as published to decide as to whether buy or sell the option…
Latest vix and further reading on NSE site…
https://www.nseindia.com/live_market/dynaContent/live_watch/vix_home_page.htm
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