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Futureperfect
Gold Member

25476 Messages

When the volatility is so low, the premiums on index options also tend to decrease which makes it a difficult proposition for option sellers if such sharp moves come. Hence naked option selling is not recommended on either side due to very low premiums, especially on the downside. Because if a correction takes place from here, the volatility might also spike and therefore the vega component of the options would start to give a loss.

11.53 PM Nov 24th
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