Help & FAQs

We use an improvised Black 76 model instead of the conventional Black Scholes model, which suits Indian markets better. Most professional traders across the...

We reverse calculate the IV from the options price using the Black 76 model.

NSE uses Black-Scholes model with a constant interest rate assumption of 10%. The observed interest rate in the market is not 10% but it varies from time to...

We always calculate IV for a strike from the OTM option of a Strike. ITM IVs are wrong because of low liquidity, and STT.  Example: Market is at 10400. ...

In academic theory, as well as in an efficient market, the call and put IV should be the same for the same strike. Examples include US / EU markets and OTC ...

This is because of IV skews. Normally in equities IV is lower for higher strikes, and higher for lower strikes. Learn more about it in the webinar here.

Theta is not always positive. Theta is positive or negative depending on whether you have net earning time value decay or losing time value decay. Theta po...

We use the futures price instead of the underlying stock price. Future prices capture the expected dividend correctly and cleanly. This is all the more a re...

Options are priced off the underlying futures. However, for NIFTY and BANK NIFTY weekly options, there is no such thing as weekly futures. So we derive ...

Trade details The Strategy Builder shows 100% probability of profit because we make some assumptions:  Let's consider the above trade as an examp...