Nifty gamma exposure (NiGEX), which measures liquidity and volatility, saw a sharp increase on April 24th with a closing value of 43L, after being at 13L on April 21st. While this indicates a positive gamma environment, it's important to note that NiGEX should not be the sole factor in making investment decisions. Theta, the cost of owning gamma, benefits option owners in this scenario, as well as rewards delta, with call owners seeing a positive effect when asset prices rise. This also reduces directional risk and variance.
It's worth mentioning that despite sharp increase in NiGEX, the Nifty closed with 0.7% gains on April 24th. Additionally, NiGEX has exhibited volatile behavior over the past 200 days, with an average value of 217K and a median value of 1051K. The value range has been wide, ranging from a low of -116L to a high of 50L.
To learn more about Gamma Exposure and NiGex, refer to the article on What is GEX (Gamma Exposure)?
To know more about VIX, visit the NSE page at VIX
No comments:
Post a Comment