Neutral on direction, Bearish on IV
| Strategy Type | Volatility - Vega Capture Around Events |
| Market Outlook | Neutral on direction, Bearish on IV |
| Risk Profile | Unlimited if using naked options, Defined with iron condor |
| Reward Profile | Limited to premium received, enhanced by IV crush |
| Time Horizon | Very short - typically 1 day or less |
| Capital Requirement | Margin for short options Rs.50,000-80,000 per lot |
| Best Used When | IV Rank > 60% before known event, implied move exceeds historical move, event outcome unlikely to be extreme |
| Trading Hours | 9:15 AM - 3:30 PM IST |
| Weekly Expiry | Thursday (NIFTY, BANKNIFTY, FINNIFTY) |
| Monthly Expiry | Last Thursday of the month |
| Type | SPAN + Exposure Margin |
| Event Margin | May increase before major events |
| Spread Benefit | Defined risk spreads receive margin reduction |
| Typical Range | ₹30,000 - ₹1,50,000 depending on strategy |
| Stt On Premium | 0.05% on sell side (options) |
| Stt On Exercise | 0.125% on intrinsic value if ITM at expiry |
| Income Classification | Business income for frequent traders |
| Gst On Brokerage | 18% on brokerage charges |
| Rbi Policy | Bi-monthly (6 times per year) • VIX rises 1-3 points in week before • 2-5 points VIX drop within hours after |
| Union Budget | Annual (February 1st) • VIX rises 3-6 points in 2 weeks before • 4-8 points VIX drop after budget speech |
| Election Results | As per schedule • VIX can double leading up • 10-20+ points VIX drop after clear result |
| Quarterly Earnings | Quarterly for individual stocks • Stock IV rises 30-100%+ before earnings • IV drops 40-70% overnight after announcement |
| Pre Event | High liquidity as traders position |
| During Event | Can be volatile with wider spreads |
| Post Event | Liquidity returns, good for exits |
AlgoKing is a flight simulator for traders — real market data, real backtests, zero real-money risk.
Create your free accountEducational simulation platform. Not investment advice. No SEBI registration required.