To measure how Implied Volatility impacts options premiums, we must first define what implied volatility is. The majority of derivatives analysts consider implied volatility as the expected future volatility of the underlying. Let us set the record straight: Implied volatility is not the measure of the volatility of the underlying instrument. Implied volatility reflects the behaviour of a specific option strike. It makes no predictions about future price swings of the underlying instrument,...

If you are a Bank Nifty options trader, you are certainly aware of what volatility is. However, the moment someone asks you to apply the...

India's benchmark  Nifty  witnessed a roller coaster ride yesterday (13/01) as the index opened gap down and dropped down to 23,047 in...