May 11, 2019 at 7:38 AM #104168
Guys one more thing i want to add that ::
high IV leads to increase premium which indicates that seller is in fear in order not to hit his Strike Price he increase his premium ( coz normally retail investors usually prefer to buy call or put option with lower premium)
If market moves against the seller then seller usually unwind their contracts to prevent further loss which can leads to short covering ( IV shedding )
Hope this concept might b helpful if any addition you are welcome. Thankx to NB sir for creating this club….