Nifty Straddles and India VIX

These charts are not update until further notice

 

Nifty Straddles & India Vix Chart plots the cumulative premium of put & call options of Nifty and volatility index (VIX) of Nifty.

Chart will be updated every hour during market times.

Nifty Straddles

The chart above depicts the behavior of Nifty Straddles at various strike prices and their response to VIX (volatility index of Nifty). Each straddle premium is the sum of call & put options last traded price of that particular strike. The chart plots seven straddles - one At-The-Money (ATM) straddle and three each on lower bound and upper bound of the ATM straddle strike prices with a spacing of 100 points.

Depending on the spot price of the Nifty, the chart dynamically plots the premium of seven straddles of last 30 days. For example, if the spot price is close to 8400, the chart dynamically plots ATM 8400 straddle and three lower bound straddles (8100, 8200, 8300) and three upper bound straddles (8500, 8600 and 8700). And if the price of the Nifty spot moves closer to 8500, then the chart automatically re-plots the new straddles of 8500, 8200, 8300, 8400, 8600, 8700, 8800 strike prices. This gives the ability to view the chart without losing the overall context of the market.

Usage

The idea behind plotting the straddles is to get a bird's-eye view of Nifty options at important strike prices and how they respond to the moving Nifty index. The main theme behind this is how a trader can profit by selling straddle premium using the context of VIX and the market.

Posted in Nifty, Options and tagged , , , .

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