How should I trade options during high-volatility events like Budget or RBI policy?
High-impact events cause IV to spike before the announcement and typically crash right after — a phenomenon called IV crush. Strategies like straddles or strangles can benefit from the big price move, while spread strategies help manage IV crush risk. F&O Universe’s Strategy Watchlist curates event-based strategies suited for volatile market conditions, and the Strategy Builder lets you model your position under different price and volatility scenarios.
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What is Implied Volatility (IV) and how do I use it for options trading?
Implied Volatility (IV) measures the market’s expectation of future price movement — higher IV means more expensive options and vice versa. The Option Chain in F&O Universe displays live IV across all strikes, helping you decide whether to buy or ...
What are Open, High, Low, Prev. Close Prices?
Open - Price at which trade of the scrip starts at the beginning of the trade session. High - Highest price at which the scrip has traded during a trade session. Low - Lowest price at which the scrip has traded during a trade session. Prev. Close - ...
What is the difference between Futures and Options?
Futures obligate you to buy or sell an asset at a fixed price on a future date, with unlimited profit and loss potential. Options give you the right — but not the obligation — to buy or sell, with the buyer’s maximum loss limited to the premium paid. ...
Can I access F&O Universe and trade options on my phone?
Yes. F&O Universe is fully available on the IIFL Markets mobile app. You can access all five modules — Option Chain, Strategy Builder, Strategy Watchlist, Easy Options, and Basket Order — analyze the market, and place trades on the go from your ...
Is options trading risky? Can I lose all my money?
Options trading carries risk, but the degree depends on whether you are buying or selling options and which strategy you use. For option buyers, the maximum loss is limited to the premium paid. For sellers, losses can be larger without proper risk ...