Here is a tutorial on Option Analysis Tool – Option Action which helps options traders to Design, Create & Monitor Option Trading Strategies.
Implied volatility (IV) is a very important measure if you are trading options. It helps traders to understand the overall market expectation. In mathematical terms Implied volatility explains the expected – annualized one standard deviation range where the stock is expected to trade in the future.
This webinar detailed analysis of Option Volatility Trading Strategies and how one can make use of volatility to convert into their trading edge.
IndiaVIX is a volatility measure of the future expected volatility. It is calculated based on the bid and ask price of the out of the money options for near month and mid month options. India VIX during the year 2017 spent most of the time below 14 which eventually turns out to be a slow moving trending markets. In fact during the entire year 2017 , Nifty never seen a 2% negative loss on EOD basis. That shows the confidence of the majority of the market participants.
In finance, the volatility smile is a long-observed pattern in which at-the-money options tend to have lower implied volatilities than in- or out-of-the-money options. The pattern displays different characteristics for different markets and results from the probability of extreme moves
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).