Option selling has always been a lucrative trade. They say,
more than six out of 10 options ever created have expired worthless . 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 lossHere 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.
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