Comment on Basics on Options Shorting/Writing

subclt commented on 06 Jun 2014, 03:36 PM

Dear Nithin some body wrote this following comment in this blog on some times before


It is informative.In addition, let me make some comments about the vega effect on the premium of options, essentially it has crucial role on the premieum of an option.Simple method is that just watch India vix, if the value of indiavix is positive 100% sure the premieum has inflated and if it is negative premium of option also must have reducecd.Keep watch and make sure this piece of information is important

Could you please elaborate this comment.Because I am newbee to the option writing.And indiavix positive 100%——- got me confused.How to check indiavix percentage– by intraday basis or contract basis?how to relate this one with the option writing?

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