Yes. India VIX plays a critical role in options trading because option premiums are directly affected by implied volatility.
High VIX environment:
- Option premiums are higher.
- Strategies such as Straddles, Strangles, and hedging strategies (Protective Puts, Collars) are commonly considered.
- Traders often reduce position size and focus on risk management.
Low VIX environment:
- Option premiums are lower.
- Strategies such as Credit Spreads and Iron Condors are often preferred.
- Traders may focus on range‑bound strategies and spread trading.