Why Options Premiums are trading high and VIX is also high. Are we expecting Big Movement?

General
1

Why Options Premiums booth CE and PE from last 3-4 days are trading high and VIX is also high…Are we expecting Big Movement?

2

It is the results season, and also the markets have been more volatile. Higher volatility automatically means, higher VIX and option premiums. Don’t think this is in anticipation of a big movement.

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3

Thanks Nithin… But if Result season is the case we must see Options Premium trading high on every qty results.
My Observations

  1. Vix was trading at 10-11 few days back, Lowest of the year. Range of India VIX for the last 4 years has been in between 13 to 35 . Therefore Vix has to come up.
  2. If Vix has to increase from level of 10…Nifty has to come down.which is happening in market Vix trading above 16 now and Nifty fall by almost 400 Points from the top. A negative correlation between India VIX and Nifty, VIX tends to drop when Nifty goes up, and vice versa.
  3. So Finally if we expect Vix to increase from level of 10, Nifty has to come down… India VIX at high levels implies a market expectation of large movement in Nifty and vice versa.
  4. When Vix started moving up, Normally it take 4-8 weeks for the process to complete
  5. 9 Sessions level left in the current month expiry, I expect we may seen range bound/ bearish view in current month and vix may come down in last week of the current month.
  6. But Process of Vix price wise and time wise (4-8) weeks not completed yet and if process has to complete vix has to touch level of around 20-25.
  7. I assume we may see More decline coming up next month and vix will touch level of 20-25 Finally time wise and price wise vix process is done now.
    I may be wrong. Please share your thoughts. Really Appreciate