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happy to have given the 100th like for this video. This deserves 10K likes. Brilliant and thanks spending your time in putting across the views so clearly.
concept has been so nicely explained along with examples. I will keep this as a lesson for whole trading journey. does concept work during last few expiry days also ?
very well explained sir , my doubt is where can i get historical data for volatility skew or formula of volatility skew so that we can backtest some strategies based on volatility skew?
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so in forward skew, calls are expensive (because of high IV) but why in bull call spread - Call spread are cheaper than put spread ? My guess is because we are buying ATM call and selling OTM call (and as OTM call is costly, so we are getting good premium by selling OTM call resulting in less debit spread). Is my logic correct ?
10200 straddle short advice @below 300 sl 340, very good risk reward,reason behind put writing are much less then call writing @10100,so side ways to downward expected.
excellent video and insight . Please if you can elaborate on strategy on volatility skew it will be helpful .If reverse skew is there we need to go for debit spread on put side as the script is indicating possible direction and also safe as spread is less??
Volatility skew only tells which spreads are cheap and what is the perceived risk or opportunity that market participants are anticipating. In the end, this can only be used as a secondary signal for confirmation if you got a signal from other systems such as technical analysis.
Sir when I find iv of option call/put is just started to increase can I go for long option and as you showed bharti airtel call are expensive so when option are expensive it should be sell that theory is not matching with long call debit spread of bharti i mean how to judge it
Sir, if put option expensive then we follow put spread, Now for July series put option are expensive then why we followed call spread in video timing 19 min. Please Explain if I am wrong? Thank you
Good catch. Ideally, if we are extremely bearish then bear put spread is the way to go. But in this case, we wanted to have some protection on the upside in case NIFTY moves up further & this was possible only through Bear Call Spread. It gains under 3 conditions - neutral, bearish or slightly bullish.