India Budget event causing significant IV markups in Monthly Options contracts. Weekly Options out-of-favour in spite of FOMC.
What is covered in the Full Insight:
Introduction to EQD/NSE Nifty50 Volatility Update
Market Overview and FII Influence
India Budget and Its Market Implications
Options and Volatility Dynamics
Trading Strategies and Recommendations
Boomeranged on Fri, 31 Jan 2025 02:24
Pre-Budget Update: 01.02.2025 (Saturday) announced as special trading session. First full budget release for the Modi 3.0 Govt. Options markets have priced in significant risk-premia for the event. Vol curve is now fully inverted. ATM IVs (as of 30.01.2025 close) are as follows:
-- Weekly expiry (06-Feb-25): 23.7%
-- Weekly-2 expiry (13-Feb-25): 20.1%
-- Monthly expiry (27-Feb-25): 17.2%
SUMMARY
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