So the VIX – NSE’s volatility index – is very close to all time lows.
With the indices having not moved much this entire year, is volatility gone? Does it make sense to just write strangles and straddles and forget about them? It’s scary, but the strategy has worked the last year or so. But it only takes one bad day…
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>The direction seems to be down.
Low breadth like Sunil mentions in one of his post.
08.02.10 at 3:28 PM
>Generally, very low volatility levels- such as those around 15-16 are indicators of a crash/big drop.. Atleast this has been the case for CBOE VIX in the US.
08.03.10 at 1:28 PM