கண்டிப்பாக தெரிந்து இருக்க வேண்டிய India VIX Formula?

[00:00:02]S: This is a friend who came to our YouTube and commented. Actually, I think this is just a coincidence. If the call option comes and dies, the market is up, the oil price is down, and positive news is coming. But our market and call options have not come up at all. Are they cheating and deceiving us? They have come to express their doubts through the comments. But what I understood when I read his comments was that in this video, he seems to be explaining and explaining at an advanced level, and this content comes up, and we can talk about it now. S, friend, you should have read the comment that friend left. So what is it that he understands and doesn't understand in that comment?

[00:00:51]He may have come to know a little about this volatility, but if you came to see it without knowing it, it seems like he came to post the comment.

[00:01:01]Maybe even a beginner. So, let's look at this simple content, what is this volatility, how people have come to understand it, and how to understand it correctly. First volatility is okay, then volatility is nothing, the market will adjust the price as if it were panicking. Okay, let's put it this simply.

[00:01:27]If you asked if this one Ivy would come in a stock price, it wouldn't be in an equity. It wo n't be in a futures. But when this option comes to an option, this volatility is like a stock price. That means for 50 rupees, you can take any strike you want, at an OTM price.

[00:01:44]I have taken 50 ODM as an example.

[00:01:47]Let's look at that 50-something breakup. When we say so extensible value, it is obvious that this comes up and the ODM so extensible value will be zero. The time value will be ₹35 per share. Let me give you an example. If you look at the IV value, it's 20, so ₹35 is 20, so how much will it cost? Will a ₹7 come?

[00:02:08]Yes, it will be ₹8 from ₹7. So if you come here and watch, I'll give you ₹8. If you make this, it will cost you about ₹43.

[00:02:15]Plus, if you come and see it, it's an excessive amount of money, and there's demand and supply, so that ₹50 is definitely worth it.

[00:02:22]So I've just put an approximate value here. Okay.

[00:02:30]This option is the only instrument that has given a value to Direct Ivy. So, if a lot of people come and watch, you'll see the technicals, the breakouts, and all that stuff. But more than that, note that you don't pay attention to volatility, you don't trade options because it's open and you come and say that. Actually, when I saw that comment, that's what I understood. So what if the call option is dead?

[00:02:51]Why is the market going up but the call option is not going up? What he needs to understand is that he doesn't know about this volatility drop.

[00:02:59]I've been crying for the last four days. There is no premium in the market. Option traders are struggling. There are many comments related to that.

[00:03:06]You and I have posted the only reason for that. The volatility in the market is not now. It is now 20%.

[00:03:14]This same month in March, when Iran, Israel and the US attacked, the same Ivy went almost 50%. So, what was this one portion that is now ₹8? If so, it would have gone up to 2829. If the value of a stock increases so much because of a single year, then your option price will also increase, just look for a mechanism like that. Now that volatility is decreasing, that value will decrease. Then you must be very, very, very lucky. If you are an options trader and you are on the buying side, you need a lot of filtration.

[00:03:50]You should only trade if necessary. Otherwise, there is a high chance of a 95% loss or your premium being degraded to TK. Come and understand that.

[00:04:00]Okay, so after you take it, when you move from a lower volatility to a higher volatility, the same option buying will give you profit. It would be funny if the Ivy portion changed from ₹8 to ₹28.

[00:04:13]You can make a profit if your option price increases by ₹20. But this doesn't happen every day.

[00:04:16]Why is it that when a price option price goes up, the seller gets scared and books a loss?

[00:04:23]If the option price falls to the same level, the buyer makes a loss and the seller makes a profit. This is a simple concept. Now, let's just tell him what he asked. India Wicks is doing nothing. The overall index value that represents the entire market, whether the Nifty is OK for the next 30 days, or the 30-day period, represents the overall index value, or the option value, or the option value of a particular option. Actually, it's been a long time since I came here and explained this.

[00:04:53]Option IV means there is a fear for every strike. Corrections.

[00:04:58]Every strike comes with a fear. If I take the OTM, what kind of friends are they taking the OTM? There will be a lot of fear there. There won't be many people who take good risks. Whatever they do, they'll leave in the next hour.

[00:05:09]They will be active in the next hour.

[00:05:11]Then there are a bunch of people in the next hour. There are only about 50 people.

[00:05:14]But if you look at the OTM, there are 1000 people, so it reflects the fear of the 1000 people here.

[00:05:20]Then there will be more ivy. There are only 50 people here. Then there will be volatility for those 50 people. There will be fear. Then there will be some volatility here. There will be more volatility here. Strike Wise comes and Option IV changes. What we need to look at here is [first] IVF and IVF. This is not one thing, this is something that comes and ranks.

[00:05:37]I think it's December. Back then, I think our IVI was almost, or rather, India's, around eight. These lowest Ivy options are almost called IVP, meaning the Ivy is almost very, very low. Then they would have ranked it. I'll show you on the chart that it's zero at the end. They came and ranked it as zero. I think this same Ivy Indiawicks was almost 30 in mid-March. At that time, the option was around IV 35.

[00:06:08]They have made a rank of 100 or something like that. So, when the same IV that was eight came to 30, there was a high and fearful market, so they gave it a value of 100. I'll show it on the chart at the end. Even though this may seem like a simple thing, you should pay attention to it. Okay, I'll just come and tell you what we're doing wrong here, okay? So very very very very very underestimates volatility. If you're asking if they do this or that, they definitely do. Whether it's a beginner or a professional, I'm just going to scalp. I want to know all this, I want to know everything. Because if you left out this volatility portion, which is part of the option price you're buying, you could definitely have made money today. If you really come and watch it during the long period, you wo n't be able to make money off of it. So if we take all the option strategies, we will be asking for this. That means Lower Ivy is knocking. Last Friday, when the IPO rose by 7-8%, the sellers sold again and made money when the IPO dropped at the end of the EOT.

[00:07:14]A premium pudding that was 50 rupees, a premium pudding at 11:30 in the afternoon, came to 20 rupees at 2:30. If you come here and see ₹30, you'll have a T.K.

[00:07:24]Okay, if you had escaped and turned into a pirate and gone inside, you would definitely be lost. You are a seller, okay? The premium has gone up, but it has gone up out of fear. If you had made this call based on my volatility, the money would definitely have come into your pocket. So don't come here and underestimate this. And another thing, I'm telling you, you're doing everything technically, so you're all front-loaded. Okay, do n't take this as advice. If you look at the technical side of things, you look at the importance of technicals. If you were an options trader, I would say, give it to Ivy, give it to volatility. I'll tell you how to come and give it to Cho. Okay, you're doing this because you don't understand. Now, after watching this video, I understood that this content was an eye-opener. If you, one or two or three people, also like this video, I am very, very happy. After reading that comment, it is not just a comment from him. I've been talking to a lot of friends and they've been telling me over the phone that Ivy should watch this, Ivy should do this, and of course I should definitely come and watch it. We can do whatever we want, if you come here and see, I'll take it. Okay, guys, please consider putting it in your wallet before the trade.

[00:08:38]From March until January, that is, before this year's signing, Ivy was definitely here. Okay, Indiawicks was almost 17. When it goes from 24 to 25 and then to 17, well and good, very good. There were sudden spikes in the market, like down, up, up, and down. It was very exciting. Your premium was not in one place but kept changing.

[00:09:01]You can make money. If you had come and watched the athlete, you would have seen your premium move. But now, when you have low wallets, slow motion is definitely the way to go. There will be a very fast TK. There will be a fake breakout. A lot of filtration is needed. What a fake breakout that would require a lot of filtration.

[00:09:20]Not one. If you read it, everything in the comments he made was correct.

[00:09:24]The market is already up and running, sir.

[00:09:26]Oil prices have come down. There is good news. If the market goes up, I want to buy my call option. I definitely want to climb it. But there is one side that you have taken. The always fast skew side comes and the put side.

[00:09:40]Fear will always come and go. You can even say it's good news. If you throw a bomb at a knight, it will be empty. Then everyone would buy put options to hedge for safety. This one comes and looks like a skewed side. There is nothing else besides the past skew side. This past is skew side. If you come and see it, you will definitely be considered. Okay, this is the same call side.

[00:10:01]This is the one I'm leaning towards.

[00:10:03]Okay, I'm leaning towards the side. If you come here and see, you wo n't be so scared. I'll go buy a long one for Perusa Edge, but that's not the case. Okay, so if you have a big hedge, be patient, he can come and take it the next day.

[00:10:15]He won't need it. There is always an additional buying or a fear on the side of the pot, just in case the pot crashes or bad news comes. Note that there is no put call side.

[00:10:25]When volatility drops, instead of the put premium falling, the call will be added to the put. You should choose a call option only after seeing this. So I'm going to buy a call option, so be careful, there's a 100 or 1000 times chance that your premium will melt quickly.

[00:10:43]Okay. So, you must have understood by now that filtration is very, very important at low volatility.

[00:10:50]You can definitely come and go during a time of high volatility.

[00:10:52]No problem, you'll get a move on something. At least one entry will be available for both the up and down sides. If you come and see the top and bottom, a ₹10, ₹20, ₹100 athlete, a third, they will give it to you. So you have to come there and ensure the premium I took is the premium?

[00:11:09]Just consider that, right?

[00:11:11]I trade an Edge for an Edge, so they will definitely understand everything we say. They must have noticed this video too. What can they do? Volatility is down now.

[00:11:23]Indiawicks came in at 12.6. Yesterday, when the India WIX was at around 13.5, the India WIX rose from around seven to 8%. What could have been done then? If the market had dropped 200 points, it wouldn't have come back up. That is, it went up because it went down. If you saw that it was a plus, you were also afraid of the market. If you had come and seen that fear, the premium on Azhaka ODMs, which was ₹10, had gone up to ₹45. The same premium end of the run has ended at ₹8. So if you came here and saw it, you should take a spray.

[00:11:49]Not too much. Buy this seed and get the next 100 points. I will make a pie out of this. Nothing, just the credit spread. This is a really good, super thing. It's a good game if you can get such a large spread margin on intraday.

[00:12:03]I'm only looking at the market for a 300-350 point spread. These strikes are ₹45 and the premium is ₹8. Hands off. So, why doesn't everyone who comes in come out?

[00:12:13]That position was not needed, so this was a good one. Even though this is a lower, slower volatility based market, if you see this premium coming up, it's a different matter, buyer, that's why you're struggling. But a seller is making it here, it's good. I'm just saying this because you guys want to come and take credit cards and all that stuff. If you were a boy, filter your trade. If you ca n't get a trade, do something else. Please don't go to the options page, that's what happens in lower volatility markets. This is what is called IVF and IVR. If you look here, it's almost December 24th, okay, last year, 2025, I know you've seen this box here. IIV and IIVR are at zero. Then I have the option of IV 6.8, then I know IndiaWix will be in the eight range. Okay? So, it's safe to say that the market has dropped by almost 8% since then, from 26,164.

[00:13:09]Is it okay if the market always goes down? Correct, this time 22,496.

[00:13:14]A 3,500 point gap. Ivy is at 34 at that time. That means your IVP, if you look at it, it's called the Employee Volatility Personal. The fifth is the Implied Volatility Rank. That's it. Take the rank as an example. So when volatility was low, your rank was zero, but now when volatility is high, this is the highest volatility in the last 300 days. Okay, so this is what you're saying, if you've come and seen it, you've given a rank of 100, 100 is the first rank, so take it as the first rank, and when you say that this is the first rank, the market shows volatility that hasn't been there in 300 days. Then your premium will be very expensive.

[00:13:53]And your volatility will be very high. There will be a zigzag move.

[00:13:57]If you look now, the volatility has reached 40. What does that mean for 40?

[00:14:01]If so, you have no volatility. Okay, I know, IVP has reached 48. Your volatility has changed by 10. It's almost 10, as I call it.

[00:14:09]Dad, how do you get your premium and dance and go here and there? So you have to think about it.

[00:14:14]Okay, when Ivy was in the market, there was a good move. The market gave everything. But when it comes to lower market, even with lower volatility, it does not give anything. This is what it means. So this is a place to catch your volatility. Let's take it. So check it out and compare this content with the comment you talked about. You will get a good understanding. Thank you very much for watching this video. Thank you very much Jai Hind.