Wondering why VIX is under 12 even when elections are very near? even volatility is high.
@Sensibull
because Mr. market is believing NDA will continue this election 
if any thing wrong happend against NDA first beat is PSU Company - next nifty 
nifty will become handicapped
- The IVs of the expiries before elections will not be affected by elections
- Although the event is nearby, market is near all-time high. This usually leads to low IV
- Fear is non-existent. Low IV
- The market has been going up in a trended way mostly, without much chop. This causes IVs to drop. That rhymed
- If there is put selling directionally that can also cause an IV dip, and I suspect this is in play too
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How is this index calculated? Is it programmatically based on volumes and price change?
The stocks are quiet volatile last week right
9.9 now, normally before general elections it used to go to close to 30 and after that it used to come back to it’s mean, surprising this time though.
Even S&P 500 VIX bottomed out from 11.96 to 16.3 (up by more than 30%)
Except for the market expectation that the ruling party may come back again, don’t know what other triggers are causing this much of a fall in VIX
Reasons for VIX to be low.
- Market is near all time high.
- Economic indicators are all good.
- Current ruling party is most likely come back to power.
- Looks like middle east war is almost not going to be escalated.
Any one or more of the above becomes false VIX is going to shoot up.
This is the right time to buy long term PUT as an hedge to your portfolio just in case.
Volatility is different to vix, to simply put volatility is just a deviation from stocks mean both above and below. Vix is calculated taking ATM and OTM prices of near month and next month option prices of nitfy. Seems there is no fear in index option sellers.
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If VIX is down then major correction in the market will come in coming days
Profit booking coming ahead in short term
Global volatility may increase
Geopolitical tensions will ease
NSE decision to reduce Lot size for options
Current party government may come.
It is positive for domestic growth
