Iam just very curious about the volatility distribution among the various strike price of Nifty Options. And From the chart it is observed that ITM(in the money options have low volatility when compared to OTM(out of the money options). Volatility is almost dead in 5100,5200 Calls and Puts of 25Mar 2010 option series .And more over Calls have more volatility when compared to put options in all the strike prices
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Can you ellaborate that what does this chart indicate? How can I analyze the market by using this chart?