Secret Swing Trading Strategy

Forums Ask Me Anything need an idea about IV

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    • #88897
      Nitin Bhatia
      Keymaster

        FOR TODAY(03.05.2019) ITC OPTION CHAIN …IV IN CALL SIDE AT 305 STRIKE PRICE IS 19.93 AND AT SAME STRIKE PRICE AT PUT SIDE IS 34.72… WHY THERE IS THAT MUCH OF DIFFERENCE … AND WHAT CONCLUSION CAN BE MADE BY THIS OBSERVATION

      • #89391
        Nitin Bhatia
        Keymaster

          Dear Mukti268,

          as every stock have different IV Data, i will suggest you to save daily option chain of your watch list as suggested by NB sir after 7pm …..do it this regular basis…..and analysis the data everyday with chart,time decay & all your observations ….start with paper trade first…..this for FNO Stocks only

          Regrads
          Ankur

        • #89396
          Nitin Bhatia
          Keymaster

            for option chain Kindly watch NB sir Option chain series too…… if you dont have knowledge of FNO stocks and OC

          • #91422
            Nitin Bhatia
            Keymaster

              I humbly request, kindly do not post any aggressive comments or comments bullying others. I have deleted two such comments. Everyone has their own point view and let everyone express their opinion freely. I will share my opinion on the query raised.

            • #91426
              Nitin Bhatia
              Keymaster

                IV is the measure of fear factor. High IV on put side means bears are more fearful compared to bulls. The reason being, they are expecting the stock price to move higher.

              • #91433
                Nitin Bhatia
                Keymaster

                  Thank u so much sir for your answer… And sorry from my side to you and to Sharma Ji also…

                • #92677
                  Nitin Bhatia
                  Keymaster

                    Guru ji agar high IV rhe on call side to kya bulls are more fearful then bears and they expecting the stock price is going down plz suggested me guru ji

                    • #94081
                      Nitin Bhatia
                      Keymaster

                        yes but there is no upper or lower limit of IV. It is qualitative conclusion.

                    • #92686
                      Nitin Bhatia
                      Keymaster

                        Sumit ji,

                        Yes, in previous weeks IV has given this signals 3 times (premium decay was also favoring direction)

                        * Two times IV was high to 26 compare to 19 on PUT ATM>> market was down in last hour

                        * One time IV was lower to 5-6% compared to 13 on PUT ATM>> Market relly 70 points in last
                        hour.

                        I booked profit in thrice of this with IV excel sheet & premium decay analysis.

                      • #92979
                        Nitin Bhatia
                        Keymaster

                          Dear Hiren ji,

                          it will be help full to every one if you can explain how to record the IV in excel sheet.

                          Many Thanks….

                        • #94077
                          Nitin Bhatia
                          Keymaster

                            Dear Hiren ji,

                            Do you consider IV in atm contracts and compare the difference between ATM call and Put , along with premium decay. ?

                            • #94083
                              Nitin Bhatia
                              Keymaster

                                You may consider ATM and near ATM on OTM side.

                            • #94124
                              Nitin Bhatia
                              Keymaster

                                Thank you. One last doubt, what if the iv in similar price? like atm call 20, and atm put 22 kind like that. how to concluded it?

                                • #97736
                                  Nitin Bhatia
                                  Keymaster

                                    Neither bulls nor bears are clear about the direction.

                                • #94466
                                  Nitin Bhatia
                                  Keymaster

                                    See for ATM at 12:30,

                                    Live market example:11600 ATM IV is at 19% at call side & 12% at put side,

                                    This is signal of market will fall today from here, premium decay also support for fall from here.

                                  • #94484
                                    Nitin Bhatia
                                    Keymaster

                                      Ya got it. Hiren bhai.

                                      so usually in NIFTY, how much % difference you see before make decision? i know its qualitative conclusion. but still if its more than, more chances of getting success right?

                                    • #94488
                                      Nitin Bhatia
                                      Keymaster

                                        IV @ 11600 decreased to 15.85 on call side &15.11 on put side
                                        Looks down fall might not be drastic

                                      • #97345
                                        Nitin Bhatia
                                        Keymaster

                                          I have a query.
                                          Why is it that even when the IV on the Put side on ATM strike was more than IV on the Call side on the ATM strike, the market fell?
                                          I thought the market should go up because the Put IV was more compared to the Call IV.

                                          I would be highly obliged if someone can please clarify.

                                          • #97738
                                            Nitin Bhatia
                                            Keymaster

                                              You cannot conclude just based on IV. You have to check premium decay also. Besides that smart money should be betting in that direction.

                                              • #98104
                                                Nitin Bhatia
                                                Keymaster

                                                  Thanks Nitin Ji for the clarification.

                                                  So, in a nutshell, we need to analyse the IV of ATM call and ATM Put and also the NetChange of Call and Put.
                                                  Am I right in my understanding?

                                                  And for Nifty Intraday positions, how to calculate the smart money positions? Is it related to Change in OI and Volume?

                                                  Thanks & Regards,
                                                  Anirban Deb

                                                  • #113081
                                                    Nitin Bhatia
                                                    Keymaster

                                                      Smart Money positions can be checked with the help of OI and Volume.

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