Expecting large move in either direction, or IV expansion
| Strategy Type | Volatility - Long Gamma and Vega |
| Market Outlook | Expecting large move in either direction, or IV expansion |
| Risk Profile | Limited to premium paid |
| Reward Profile | Unlimited on both sides |
| Time Horizon | Event-specific - typically 1-14 days |
| Capital Requirement | Straddle premium Rs.150-300 per lot, full premium at risk |
| Best Used When | Before known catalyst, IV Rank below 40%, consolidation breakout expected |
| Trading Hours | 9:15 AM - 3:30 PM IST |
| Weekly Expiry | Thursday (NIFTY, BANKNIFTY, FINNIFTY) |
| Monthly Expiry | Last Thursday of the month |
| Type | Premium payment only |
| No Margin Required | Long options require no additional margin |
| Typical Cost | ₹15,000 - ₹40,000 per lot for ATM straddle on NIFTY |
| Capital Efficiency | Full capital at risk but no margin call possibility |
| 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 |
| Best Instruments | NIFTY and BANKNIFTY ATM options |
| Optimal Strikes | ATM strikes have highest liquidity |
| Bid Ask Spread | Expect 1-2 points on ATM NIFTY options |
| Volume Consideration | Weekly options have higher volume than monthly |
| India Vix | Primary volatility gauge for NIFTY |
| Typical Range | 10-25 under normal conditions |
| Low Vix | Below 12 - good entry for long volatility |
| High Vix | Above 20 - consider taking profits |
| Vix Spike Events | Budget, Elections, RBI Policy, Global crises |
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