India VIX

Volatility index or India VIX last week captured traders’ attention when it plunged nearly 20 per cent during intra-day on April 23, to 9.8, even as the process of General Elections to the Lok Sabha just began. However, the index bounced back a little and is currently ruling around 11. The sudden fall caught a lot of traders, who indulge in strategic option strategies such as strangle and straddle, off-guard as the premium dipped sharply. This also signalled that traders are more complacent.