Query: Bank Nifty & Voltality.

tradingstudent

Well-Known Member
#1
Hi,

Currently i am using India VIX as a reference point to gauge the level of volatility/implied voltality for Nifty options.

For Bank Nifty options, is there a separate bench mark or can we use the same India VIX?

Thanks
 
#2
This is from the NSE website:

India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days.

So, to answer your question - No, the India VIX does not represent the volatility for the BANKNIFTY itself.
 

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