“When Calm Becomes Risk: Understanding Sub-10 India VIX”

[nishshkumarjaani@gmail.com]

“When Calm Becomes Risk: Understanding Sub-10 India VIX”

India VIX has slipped below 10 — a zone that demands heightened caution, especially for option writers.

While low VIX is often interpreted as comfort and stability, history tells a different story.

Sub-10 VIX levels have frequently marked complacency zones, where markets appear calm but are actually setting up for sudden expansion in volatility.

Key insight:

Ultra-low VIX reflects suppressed option premiums and crowd consensus.

This is often the phase where choppy consolidation ends.

What follows is usually a swift, directional trend, catching option writers off-guard due to rapid volatility repricing.

️ Risk management matters more than strategy here:

Avoid over-leveraging short premium positions

Keep defined risk, wider hedges, and flexible exits
Focus on survival, not just decay

Markets reward discipline when complacency peaks.

Nishesh Jani,CFTe

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