Why IV of all counters jumped on 28th March'16?

#1
Today Nifty traded with mild negative bias during morning session, just -20 to -40 range. Vix rose 1.3-1.5 during this time.
The most significant thing happened is IV of all options. They rose 50-60% for many stock options. Those having IVs around 25-30% on 23rd, rose to 40-50%.
And it happened to all counters. My question arises from angles like:
1. Why such high IV change when Nifty traded -20 or -30?
2. Why IV did not change significantly during flat morning hours?
3. How all counters affected? Not barring single fno scrips?
4. Market opened after 4 days gap and that too flat. Why no consideration for that?
5. There was not any probable big event.

--Little bit confused today. My take is- perhaps Big players had big short volumes in the begining of the series. They purposively lowered IV on 3rd week to buyback all options. When IVs went very low, they bought options. Today they sold them!
 

mohan.sic

Well-Known Member
#2
Today Nifty traded with mild negative bias during morning session, just -20 to -40 range. Vix rose 1.3-1.5 during this time.
The most significant thing happened is IV of all options. They rose 50-60% for many stock options. Those having IVs around 25-30% on 23rd, rose to 40-50%.
And it happened to all counters. My question arises from angles like:
1. Why such high IV change when Nifty traded -20 or -30?
2. Why IV did not change significantly during flat morning hours?
3. How all counters affected? Not barring single fno scrips?
4. Market opened after 4 days gap and that too flat. Why no consideration for that?
5. There was not any probable big event.

--Little bit confused today. My take is- perhaps Big players had big short volumes in the begining of the series. They purposively lowered IV on 3rd week to buyback all options. When IVs went very low, they bought options. Today they sold them!

Which stock iv surged..call or put and which strikes ?

And yes iv's may change without change in other factors.
 

mohan.sic

Well-Known Member
#6
Suppose take Nifty...Call IVs were around 12-14 jumped to 18-20. SBIN was below 30 went to 40+. Axis was 25-30 jumped to 40-45. Name any scrip and u will see IV jump.
yes you are right....

In SBIN and Axis..not just call iv's but also put iv's went up significantly.
 

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