Neutral impactStocks
Low VIX, big move ahead? Shubham Agarwal recommends trading Nifty with a long straddle
Moneycontrol.com 2 hrs ago·22 Aug 2026, 5:56 am
Stocks Moneycontrol.com
A low VIX, or market volatility index, suggests that investors are currently calm, but it often signals that a sharp price swing could be imminent. Shubham Agarwal suggests using a long straddle strategy to prepare for this potential move. This involves buying both a call option and a put option with the same strike price and expiry date. This approach profits regardless of whether the market moves up or down, provided the move is strong enough to offset the cost of buying the options.
For retail investors, this strategy is a way to profit from volatility without needing to predict the market's direction. However, it requires the market to move significantly in either direction before the options expire. If the market stays flat, the trader loses the premium paid for the options. This approach is best suited for those who expect a major breakout or breakdown in the near term.
Key takeaways
- Category: Stocks.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
