Comment on Greek Interactions

shanky commented on 11 Nov 2018, 04:44 PM

1. is it sensible to buy options with 20 days to expiry and the IV is trading just below mean ( by seeing volatality cone of that particular stock or index) ?
2. Also sometimes Deep ITM call option IV is low(for a particular strike price) , is it sensible to buy deep itm option if IV is really low? for example, i am thinking to buy banknifty NOV series call option(29 NOV expiry) today. CMP is 25771 and IV of ATM(25700) is 14% & premium is 445 , whereas 25200CE is ITM option and trading at 745 & IV is just 10.20% (which is near SD-1 level), so is it good to buy 25200 instead of buying OTM option i.e. 26000CE , premium is 284 & IV is 13.51%(which is mean level as per volatality cone)?
3. Can we short weekly banknifty expiry series call options ( which is SD1 above) also based on the volatality calculation sheet which you shown us i.e. SD1 and SD2 levels.?

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