India VIX
With FOMC outcome due tonight, volatility is increasing sharply (pre-event uncertainty)
We are in the dark as to what FED will do tonight - so many possibilities, add to that statement - hawkish or dovish
25 bps market will rally
50 bps appears discounted
75 bps market will panic
Hence better to stay light
Above 21.75 the crucial resistance is at 2.80 if that breaches then be prepared for extreme moves (we have just seen the trailer in that case) all the way till 28
This would be mean large intra-day candles & gap openings. Avoid writing PE during such time unless well hedged. Also reduce derivative exposure its not worth it during such times.
Post event wait for VIX to start cooling down, trend direction will become clear by then
We are in the dark as to what FED will do tonight - so many possibilities, add to that statement - hawkish or dovish
25 bps market will rally
50 bps appears discounted
75 bps market will panic
Hence better to stay light
Above 21.75 the crucial resistance is at 2.80 if that breaches then be prepared for extreme moves (we have just seen the trailer in that case) all the way till 28
This would be mean large intra-day candles & gap openings. Avoid writing PE during such time unless well hedged. Also reduce derivative exposure its not worth it during such times.
Post event wait for VIX to start cooling down, trend direction will become clear by then
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