India vix

Option selling has always been a lucrative trade. They say, more than six out of 10 options ever created have expired worthless (“0”). This creates a very strong case in favour of Sell Option trades. However, if Option selling is done without any filters, it can do a lot more harm than good. As all of us remember that Selling Options come with a characteristic of unlimited or undefined loss. So, to be extra careful let us today see one such filter that can at least safeguard us from expected losses. There are always surprise moves that the market makes for which we must keep stop losses. Here we will discuss how to identify the best time to sell Nifty options. To identify if it is the best time to sell or not we shall observe India VIX. Let us understand what India VIX is and why and how we use it as a filter. What is India VIX? India VIX, also referred to as risk index, is an index of Implied Volatility or Volatility Inputs used in pricing all Nifty options expiring in the near term. These Volatility Inputs (also known as Implied Volatilities) are basically an indication of expected future volatility. Why use India VIX as a filter? India VIX gives us an indication of what kind of volatility the market is expecting in the coming days. As we all know, more volatility is bad for Option Sellers and less volatility is good. So, to judge if the expected volatility in the coming days is low or high, India VIX can be used as a filter. How to use India VIX as a filter? We want Ind...

34,372.9 -35.2 -0.10% 4,420.6 -5.2 -0.12% 34,408.06 +428.73 +1.26% 4,425.84 +53.25 +1.22% 13,782.82 +156.34 +1.15% 14.50 +0.62 +4.47% 101.752 -0.772 -0.75% 70.59 -0.03 -0.04% 75.63 +2.43 +3.32% 2.554 -0.005 -0.20% 1,971.45 +0.75 +0.04% 23.962 +0.015 +0.06% 3.8942 +0.0027 +0.07% 1,428.00 +40.00 +2.88% 3.718 -0.008 -0.22% 3.829 -0.006 -0.16% 3.913 -0.011 -0.27% 5.218 -0.005 -0.09% 113.50 +0.05 +0.04% 132.85 -0.30 -0.23% -90.62 -5.24 6.14% 186.01 +2.06 +1.12% 125.09 +1.42 +1.15% 255.90 -0.89 -0.35% 127.11 +0.69 +0.55% 445.27 +4.41 +1.00% 281.83 +8.48 +3.10% 29.37 +0.25 +0.86%

India VIX is probably the most unique broad market index on the NSE. India VIX indicates market volatility rather than showing the performance of a segment or the entire stock market. Thus, even the formula for calculating India VIX differs from the other broad market indices. India VIX index (introduced in This article explores what India VIX is, why it is important, how it is calculated and what are the implications of changes in India VIX. What is India VIX (India Volatility Index)? Volatility measures the rate of fluctuations in a security’s price or a market index’s value. A volatility index is meant to measure the volatility in a particular market. Typically, high volatility indicates high risk, and low volatility indicates low risk. India VIX is a volatility index that indicates the degree of volatility or fluctuations expected in NIFTY 50 in the next 30 days by traders. India VIX was first introduced in Why is India VIX important? India VIX is closely monitored by investors with high equity exposure. It is often referred to as the ‘fear index’. India VIX’s importance can be seen in its relationships with market volatility and NIFTY. It has been observed that India VIX correlates positively with How is India VIX calculated? India VIX is calculated using the same methodology as CBOE’s VIX, with suitable amendments to adapt to the NIFTY options book. The mathematical equation used for the calculation of India VIX is called the Black and Scholes model (B & S). The Blac...

Have you heard of India VIX? Are you keen to learn more about it? That’s what we’ll discuss here today: What is India VIX, its meaning, range, importance for traders and the overall implications. The year 2020 has been one of the most historic years for the world, and it isn’t even over yet. The year, more than anything, showed cause and effect, sort of a mirror to actions and consequences. As a result, the stock markets also saw major downturns and subsequent rises, but in all that, one particular aspect of the market was highlighted. The VIX indication. Don’t know what it is? Well then, let’s get into it, starting with understanding why is there a need for VIX in the first place. What is India VIX? Full Form First and foremost, let’s know the full form of this interesting terminology. India VIX stands for India Volatility Index. In simple words, India VIX is the volatility index that measures the annual volatility of market over the near term. A degree of fluctuation in Nifty 50 Index over the next 30 days and its calculation is based on Black Scholes Model. India VIX: Importance As we told, VIX stands for volatility index. Now let’s go breaking it down from language point of view. Volatility, both in finance and generally, means unpredictable rapid movements, from a mean of course. See data makes sense, it almost always does, its why it is one of the most reliable sources of research, informative theory and studies. But here’s the thing. Data also has variables. Now whe...

Contents • • • • • • • • • India VIX VIX in trading terminology is short for Volatility Index. It is a measure of expected market’s volatility in the near term. India VIX is index by NSE (National Stock Exchange) to denote volatility in the Indian Stock Market. India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of Note: “VIX” is a trademark of Chicago Board Options Exchange, Incorporated (“CBOE”) and Standard & Poor’s has granted a license to NSE, with permission from CBOE, to use such mark in the name of the India VIX and for purposes relating to the India VIX. To know about Indian VIX in detail, you can read this whitepaper by NSE in India VIX – How is India VIX Calculated India VIX uses the computation methodology of CBOE, with suitable amendments to adapt to the NIFTY options order book using cubic splines, etc The factors considered in the computation of India VIX are mentioned below: 1) Time to expiry: The time to expiry is computed in minutes instead of days in order to arrive at a level of precision expected by professional traders. 2) Interest Rate: The relevant tenure NSE MIBOR rate (i.e 30 days or 90 days) is being considered as risk-free interest rate for the respective expiry months of the NIFTY option contracts 3) The forward index level: India VIX is computed using out-of-the-money option contracts. Out-of-the-money option contracts are identified using forward index level. The forward index level helps in de...

Volatility Index is a measure of market’s expectation of volatility over the near term. Volatility is often described as the “rate and magnitude of changes in prices" and in finance often referred to as risk. Volatility Index is a measure, of the amount by which an underlying Index is expected to fluctuate, in the near term, (calculated as annualised volatility, denoted in percentage e.g. 20%) based on the order book of the underlying index options. India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. India VIX uses the computation methodology of CBOE, with suitable amendments to adapt to the NIFTY options order book using cubic splines, etc. Links: * “VIX” is a trademark of Chicago Board Options Exchange, Incorporated ("CBOE") and Standard & Poor’s has granted a license to NSE, with permission from CBOE, to use such mark in the name of the India VIX and for purposes relating to the India VIX.

viswaram Banknifty was fighting hard to stay in green, Nifty50 on the other hand was vulnerable to fall. Another day went by wherein Nifty was proving to be more volatile than banknifty. Percentage wise both banknifty and nifty fell around 0.5% between 12.30 to 14.30 but the perceived fall for nifty50 was higher as the prevailing price action gave it more momentum....

• If you have been looking at share market movements, you might have come across the term India VIX. • India VIX is used as one of the indicators by traders, especially those dealing in options, to understand how to place their bets. • But what exactly is India VIX and should you care about it? • We try to break down this concept into simpler words to help you understand what India VIX is and why it is important. Stock markets are volatile beasts and predicting how high or low they will go is a fool’s errand. Mostly because gauging the mentality of millions of traders is not easy. We have all heard “the stock markets are so volatile these days” or something similar, more so over the past two years. While volatility has remained elevated since the last few weeks, more often than not, the surge has been around key national and global events. India VIX since 2018 Business Insider India / Flourish As the chart above shows, India VIX surged multifold rapidly in March 2020 – it kept up pace with the rapid surge in Covid cases in the country, and peaked when the government announced the first nationwide lockdown. The volatility returned to its normal range several months later. By August 2020, it came back under 20, which is usually where it has remained, barring a few exceptions. But all that’s fine, what exactly is India VIX? Let’s decode it together and understand what exactly does India VIX mean and why it is important. What is India VIX? Simply put, VIX is short for Volatili...