Today Nifty traded with mild negative bias during morning session, just -20 to -40 range. Vix rose 1.3-1.5 during this time.
The most significant thing happened is IV of all options. They rose 50-60% for many stock options. Those having IVs around 25-30% on 23rd, rose to 40-50%.
And it happened to all counters. My question arises from angles like:
1. Why such high IV change when Nifty traded -20 or -30?
2. Why IV did not change significantly during flat morning hours?
3. How all counters affected? Not barring single fno scrips?
4. Market opened after 4 days gap and that too flat. Why no consideration for that?
5. There was not any probable big event.
--Little bit confused today. My take is- perhaps Big players had big short volumes in the begining of the series. They purposively lowered IV on 3rd week to buyback all options. When IVs went very low, they bought options. Today they sold them!
The most significant thing happened is IV of all options. They rose 50-60% for many stock options. Those having IVs around 25-30% on 23rd, rose to 40-50%.
And it happened to all counters. My question arises from angles like:
1. Why such high IV change when Nifty traded -20 or -30?
2. Why IV did not change significantly during flat morning hours?
3. How all counters affected? Not barring single fno scrips?
4. Market opened after 4 days gap and that too flat. Why no consideration for that?
5. There was not any probable big event.
--Little bit confused today. My take is- perhaps Big players had big short volumes in the begining of the series. They purposively lowered IV on 3rd week to buyback all options. When IVs went very low, they bought options. Today they sold them!
