To play during election results day

[ananths]

Hi Friends,

I was just curious about the VIX during 2009 election. Look at the chart below. :thumb:

In April and May election fever will start. Since its two months away the options price will be too high now. Yes if VIX increases the prices would go up for sure but what strike price you will chose now? thats a big question.

The chart is from this source http://www.investing.com/indices/india-vix-advanced-chart

 

[Somatung]

@Ananths

How much it had to do with election is not clear, as at those times market was very volatile in India. You should show the whole possible chart and not only the little part you show, as this is very misleading. Here the full chart:

 

[anup47]

As the vix future is a new thing in india, it will be very difficult to trade initially. As these contracts will expire on weekly basis. If some one wants to take a cue from s&p vix future then let me remind u all that it is traded on monthly basis. So the better thing as of now would be trading nifty options only. If some one wants to go long on volatility i think one should buy 6000 ce and 6000 pe for june expiry. last day it was trading @ around 795. I think the day before election result it will be trading at around 1200 or more. (here i m assuming the nifty will not move much from here and in case if it moves away from 6000 then the value will only appreciate.) I need comments on my assumption. will it (straddle value on a day before election results) be more or less.

 

[anup47]

6500 june straddle value down from 820 to 720...... this is the time to buy june straddle...... what's the view on this forum?

 

[anup]

I think its the perfect time to discuss how to trade during election time..

Any strategy guys?

 

[TradeJoker]

I think its the perfect time to discuss how to trade during election time..

Any strategy guys?

i think it is infy which gonna make some move

 

[TRADERin]

big players already manipulated the options,once check the options even thousand rupees higher once also trading at 20-30 rupees premium.

 

[TradeOptions]

It would be really interesting to see what happens on the 16 May Friday.

Although I think that this time there are less chances of any upper circuit, as we are already trading at the new life time highs, so much of the up-move seems to have been already priced in.

But if some shocking results come eg. Modi and NDA not gaining majority, then we can definitely expect a very sharp correction for sure.

Not being able to decide what kind of strategy to make in the options trade.