Short note on VIX by Nikhil in the HBL

December 20, 2013

Short Note on VIX by Nikhil in the Hindu Business Line, 2nd Feb 2014.

” VIX is a trademarked symbol for the Chicago Board Options Exchange (CBOE) Market Volatility Index. It represents the market’s expectation of volatility over a pre-defined period.

India VIX is a volatility index based on the Nifty index option prices. From the best bid-ask prices of Nifty options, a volatility figure (in per cent) is calculated, indicating the expected market volatility over the next 30 days.

India VIX uses the computation methodology of CBOE, with suitable amendments to adapt to the Nifty options order book. ”

Read More

Zerodha

Your friendly neighborhood discount brokerage

3 comments

  1. sudhakar940 says:

    Hi,

    Usually the derivative contracts will expire on last Thursday of the month, but for the INDIA VIX alone it’s having more than one expiry in a month. What is the logic behind? and Why?

  2. Virendra Kumar Sharma says:

    Dear Within
    Pleased to see Zerodha and your name in 3rd Edition of 30 under 30
    We are proud of this Generation. Sure this generation will take country to new HIGH

Post a comment