≡ Menu

Making Use of VIX Volatility

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

This broker does not charge anything for stock buying and selling. You can set GTT (Good Till Triggered) order after buying a stock - the system will sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Get a lifetime account in Sensibull.com (virtual trading app & strategy builder) fee ₹800.00+GST per month for FREE. It takes 5 minutes to open an account online. Click Here to Open Free Account with Them Today and Join 1+ Crore Investors & Traders>>

My Course Testimonials Year Wise:

Year 2015 | Year 2015 Page 2 | Year 2015 Page 3 | Year 2015 & 2016 | Year 2016 | Year 2017 | Year 2018 | Year 2019 | Instant Reaction Testimonial | Difference Between Othe Courses And Mine | Most Emotional Testimonial | Year 2020 | Year 2021 | Year 2022 | Year 2023 & 2024

Refer my post and email dated June 29, 2015 – Greece Crisis What Should You Trade.

On that day I told you that VIX has increased considerably and it is a great time to sell out of the money options and also hedge them by buying options. People who had done that may be in good profits now.

The VIX has come considerably down and its hovering near 15.41. From 18.18 to 15.41 in 3 days. This is a drop of 15.25%. Excellent for sellers. Both the calls and puts option premiums would have shrunken and the trade can be taken off. As the small profit wherever that may be has been achieved there is no need to stay in the trade.

See its profit vs time. Even if the profit is 2% – it has come pretty fast in 3 odd days. Is there any need to be greedy and wait for the options to decrease more in value? We made a quick profit and we should exit. This is how a good trader takes his trade. The original plan was to make a quick profit – so no matter what happens we will NOT alter that plan.

Kill that devil called GREED and you will become a better trader I bet.

Situations like this can bring in quick profits. 🙂 So we must look out for such situations. Since VIX is directly related to world news and happenings we can make use of it to decide, to some extend, time to sell or buy options.

Well that does not mean we will never be wrong. We can be and there should be a plan to exit. For traders who have taken my course the plan is to go straight to Strategy 2. If you haven’t taken my course and reading this you can make your own plan – whatever it is, be a stop loss or adjustments. But you must TAKE ACTION when things go wrong.

Moreover Nifty also remained in a range – low of 8195 and currently around 8460. Those 200-300 odd points movement does not matter when VIX has decreased considerably because even if one option will lose money the other makes more than the losses. Ultimately the trade is in profit.


When VIX increases take you chances. Sell options and hedge them properly, set your target profits and exit. But you must also have a Plan B if VIX does not decrease or if anything goes wrong.

Lets wait for another opportunity. 🙂

Subscribe to My Newsletter:

If you subscribe these are the benefits:

1. You get a FREE eBook on 24 great option strategies written by NSE – yours to keep forever.
2. Instant trading tips notification if any situation arises.
3. Get notified as soon as a new trading strategy is written in this site.
4. You learn something new in every email.

TheOptionCourse.com © Copyright Since 2013 ® All Rights Reserved

Click to Share this website with your friends on WhatsApp

COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy | About Me | Conservative Option Course
Find 200+ testimonials of my course:
What Traders Say About This Course

My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

Traditional brokers charge a lot for brokerage; however, this broker does not charge anything for stock buying and selling. Also, you can set GTT (Good Till Triggered) order after buying a stock, so that the system can sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Also, you get a lifetime free account in Sensibull (virtual trading app & strategy builder) which charges Rs.800/-+GST a month. It takes 5 minutes to open an account online. Click here and Open Free Account with Them Today >>

About the author: Dilip Shaw I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 4 comments… add one }
  • G. Allen July 2, 2015, 9:44 pm

    Hi Dilip,

    Keep such timely articles coming…..it only adds to the strength of the trades that we take as per what has been taught in your options course.
    Today, I want to touch upon the oft repeated maxim ” Ride your winners and cut your losses”. Indeed, I know that greed has to be under control as you have very rightly stressed above – there is no denying that… but say for example….if one has cut his losing trade immediately…. but is riding (carrying) his winning trade as should be the case. In such a scenario…. where does one draw the line as far as greed is concerned. Would carrying the winning trade tantamount or be inferred as greed…. and should the person get out even as the going is good. Or does the maxim apply more to Investment… rather than Trading.
    In simple terms… how does one stick to the above discipline… and yet not be labelled greedy?

    Best regards.

    • Dilip Shaw July 4, 2015, 6:00 pm

      Allen, Great question. Frankly I cannot answer this in a small comment. I think next week I will write on this. It needs its own post. Thanks for the question.

  • Abhishek Patil July 5, 2015, 9:53 pm

    According to me strictly Follow the Plan…!!!
    Once u reach ur target just exit….!!!

    I just give my example …
    Before doing Option course I have Taken 2 lots of Bank nifty 19500 …
    @ 112.

    And my plan was to exit when it reaches 40+ points..( As I have Read the Articles of Dilip Sir earlier to follow trade plan)
    Yes it did…but if I would have waited till expiry then I would have made 200+ pts….Believe me its TRUE…
    JACKPOT in 1 single trade.What was happen .ie.past…so just Move on.
    So it is better to be Happy with Profits u Earned by following a trading plan.

    • Dilip Shaw July 6, 2015, 12:30 pm

      Abhishek, yes when you look back at a trade you may feel bad that you could have made more (it does not depend how much – because even if it was 10 points you could feel bad because that was real money lost.) However what you are not looking or adding are those points that you could have lost by not taking the stop loss at a correct time. Over a period of time you will see that the losses far exceeds the profits and only discipline saved you from such huge losses.

      Another benefit of being discipline is that you do not look back at your trade after expiry and that helps to cut-off emotions relating to “what could have happened”. Since you are not bothered with the past you take correct decisions in your next trade. I write the results of the trade and write down what I learned from it and move on. Even now almost every trade teaches me something or the other. You cannot stop learning else you stop earning.

      Yes you are correct – just be happy with your profits and move on. Thanks for following my advice and thanks for following my blog as well. 🙂

Leave a Comment