Premiums often rise into results, policy meetings and budget days, then fall once the event passes. How that affects option buyers and sellers differently.
This article is educational. It describes how a concept shows up in Indian index and stock options. It does not recommend a trade, a strike or a position size.
What to look for
Premiums often rise into results, policy meetings and budget days, then fall once the event passes. How that affects option buyers and sellers differently. The useful question is what would make the observation stop being relevant, and how large a loss of premium you can accept if it does.