Comment on Trading India VIX - Simplified

P R Sundar commented on 07 May 2014, 10:02 AM

Hi,
India VIX was trading around 15 few months before. VIX shot up due to election. Election results will be announced on 16 May. By 19 May, the results will be fully priced in the market. So volatility is likely to go down drastically by 20 May. It is a contract that requires a margin of around 7 lakhs. 10 points difference, one can loose 7.5 Lakhs. Still people are ready to short at 10 points lower. So they are informed people who take calculated risk.

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