F&O cues: Option traders may benefit from increased volatility

Check out the F&O strategies with Shshank Mehta, Derivatives Strategist, Shah Investor's Home.

Market volatility spiked again in today's trades with India VIX hovering near 32 levels in early trades.

So what should be your stratgey in such volatile times?

Check out the F&O strategies with Shshank Mehta, Derivatives Strategist, Shah Investor's Home.

Smartinvestor : How are you positioned on Nifty and what are the key levels to be watched out for?

Shshank Mehta : We observe Nifty Futures trading higher today, however, we continue to remain bearish on Nifty with view to create short positions with a stop loss of 5475 as key resistance level on the upside. We also observe Call writing at strikes 5450 and higher. For Bank Nifty Futures the corresponding level is 9125 above which traders with a bearish view should not hold their short positions.

Smartinvestor : Are FIIs active in the F&O segment specifically in index futures ?

Shshank Mehta : Yes, very much. They were net sellers worth Rs 1,850 crores in Index Futures in the previous trading session. This is a substantial number but has to be taken with the color that this includes positions in Index Futures of DJIA and S&P500 that are listed on the NSE here in India.

Smartinvestor : Market volatility is cause of concern for the participants. How much more of an upside do you expect on India VIX now?


Click here for the complete transcript...