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Volatility surfaces is an important trading tool for option traders. Here’s a vol chart of RELIANCE OCT25 options. Note the spike in IV around earnings announcement, the fall-off in IV above and below the ATM strike (800), the spike in vol and the dramatic drop in lambda due the “fat finger” trade on the 5th. [stockquote]RELIANCE[/stockquote]
Our option strategy model, however, is not flashing any profitable trades in this scrip right now, owing to the uncertainty around the trend of the underlying and the high IV around earnings season.
The NIFTY ended on a negative tone, drifting down -0.64% for the week.
Biggest losers were DLF (-9.57%), SIEMENS (-7.74%) and BHEL (-7.01%).
And the biggest winners were SUNPHARMA (+4.50%), JPASSOCIAT (+4.45%) and ULTRACEMCO (+3.73%).
Decliners eclipsed advancers 32 vs 18
Gold: +0.46%, Banks: -1.14%. Infrastructure: -1.50%
Net FII flows for the week: $1,345.00 mm (Equity) and -$20.21 mm (Debt)
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You can now get a live snapshot of the biggest movers within an index. Head over to the “Indices” page and click on “Movers.” The page is automatically refreshed every minute.
You an also track the top gainers and losers while you are at it 🙂