Vikram RRR

@AlphaWizarDD

7 Tweets • 2023-03-30 •  See on Twitter

rattibha.com 

All About India VIX and how Trader+Investor+Fund

Manager uses it to Enhance Returns!

(1) How it helps Investors?

(2) How it helps Mutual fund Managers?
(3) How it helps Traders?

Thread.
VIX is also called the Fear Index.
High VIX - High Movement on either side very simple.

(1) How it helps Investors?

Long term investors can change their sector exposure

and hedges based on shifts in VIX. For example, if
VIX is up, then investors can shift to defensive
sectors…

How @itjegan protect its portfolio by Elite+ strategy.

Deployed when Bearish to Rangebound view
Rules-
When VIX > 25
Sell Future
Sell 500 point OTM PE
Sell 1000 point OTM PE
Buy ATM CE
Sell 2 quantity of 500+ point away OTM CE to match
premium

Payoff Example
(2) How it helps Mutual fund Managers?

They increase their exposure to high Beta portfolio

(those stock which are very trending in nature) when
the VIX has peaked out ( trending down from high
value) and they can add on to low beta stocks when
the VIX has bottomed out.
(3) How it helps Traders?

When the volatility is likely to shoot up, the intraday

traders run the risk of stop losses getting triggered
quickly. They can either reduce their leverage or they
can widen their stop losses accordingly.

It is also useful to trade volatility. In case…

How @manubhatia trade on Volatility. ~source Money
control Interview

He found out that his performance is better if the India

VIX is above 17-18. So if VIX is above 18 he would
increase his position size and perhaps bet say, 1.5
percent on each trade instead of 1% per trade.…
How @niftywizard trade on Volatility. . ~source Money
control Interview

Since he trades only on days when VIX is high his

holding period is generally one hour. But he trade for
a fixed target. Depending on the VIX value his target
moves from 50 to 100 points move on the Nifty.…

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