From last 45 days our Volatility index VIX is very low. Option premiums are very low. What is the best strategy to overcome the issue?
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From last 45 days our Volatility index VIX is very low. Option premiums are very low. What is the best strategy to overcome the issue?
Any strategy in option selling is good in low VIX conditions. It is good for option sellers if the Indian VIX is less than 20.
If you want to stick to one particular strategy, then I would suggest Short Straddle. Even though the short strangle is low at risk, but in low vix conditions, it gives fewer returns.
If you are looking for high returns, you can choose a short straddle strategy but make sure to adjust the positions when the market moves in one direction. Otherwise, it may end up in huge losses.