Comment on Trading India VIX - Simplified

Akhil Bansal commented on 07 Mar 2014, 03:48 PM

Hi Manish,

There are number of valid strategies that you can play with as already discussed here but I would like you to note that last date if polling is 12th May (monday) and result day is 16th may (friday). Exit poll results will come out on 12th itself. So you need to pay for exit poll results day and not results days as you have been stressing in your post and it will make a lot of difference. Recent assembly polls in Dec saw a lot of spike in volatility and it died down on 5th dec itself even though results came out on 8th Dec.

So one other strategy you can consider is go short on volatility on 12th May if you see volatility REALLY running up during election (Nithin is skeptical of volatility rise). This way you will be more sure and also not loose due to big theta of long strangle kind of strategy.

These are my 2 cents to the discussion.

cheers,
Akhil

View the full comment thread »