Let's understand about India VIX and What role it would play in Options Trading ✅✅
India VIX, also known as the "India Volatility Index," is a measure of market volatility and investor sentiment in the Indian stock market.
It is used as an indicator of market volatility. When it rises, it suggests that investors expect higher market volatility, indicating uncertainty or fear in the market. Conversely, when it falls, it may indicate lower expected volatility and a calmer market.
Now let's discuss whether VIX rises when Market falls❓❓
Does VIX falls when Market rises❓❓
Let's discuss it below 👇👇
When the stock market experiences a significant decline, there is often an increase in market volatility, and the VIX tends to rise. Because Selling often causes panic
On the other hand, when the market is on an upward trend and investors are generally optimistic. And VIX remains low and stable
So, What can you conclude❓❓
VIX tells about volatility which can be on either side but mostly it is experienced in falling market ✅
What's best to do in Low VIX ❓
Ans - However it completely depends on individual to Option Buying or Selling but in Low VIX Option contracts are relatively cheap which favours Option Buyers ✅