Yes, most probably the markets will fall in that scenario. So it makes sense to buy puts.
But currently the IV are shooting up again thereby making the puts more expensive. So I am not being able to decide about the correct timing for my put trade. :annoyed:
Should I wait till tomorrow, or should I just jump in right now.
One thing is for sure that I will bet on the down side by buying the puts, even if this bet goes completely wrong.
Is there some way to quantify the negative effect of crash in the put IV, versus the positive effect of crash in the nifty index, on the prices of the Put Premiums. How to quantify these 2 opposite forces and figure out the premium values by changing the IV and Underlying Index values accordingly.
If anyone is aware of such option premium calculators then please suggest.
Thanks
But currently the IV are shooting up again thereby making the puts more expensive. So I am not being able to decide about the correct timing for my put trade. :annoyed:
Should I wait till tomorrow, or should I just jump in right now.
One thing is for sure that I will bet on the down side by buying the puts, even if this bet goes completely wrong.
Is there some way to quantify the negative effect of crash in the put IV, versus the positive effect of crash in the nifty index, on the prices of the Put Premiums. How to quantify these 2 opposite forces and figure out the premium values by changing the IV and Underlying Index values accordingly.
If anyone is aware of such option premium calculators then please suggest.
Thanks
assuming that it is higher on the put side....I would put the VIX component around 200+ for puts