## Yes bank option chain implied volatility excel sheet

This implied volatility excel sheet can be sued in all-stock like Yes Bank Ltd.,

**Tata Motors**Ltd., State Bank of India, Zee Entertainment Enterprises, Oil & Natural Gas Corpn LtdNTPC Ltd, ITC Ltd., Coal India Ltd,IBULHSGFIN , SBIN , AUROPHARMA , RELIANCE , .### But what is implied volatility?

- There are different volatility index in the world E.g. CBOE volatility index measures the average implied volatility of various options of S & P 500 - measures the NASDAQ 100 future volatility-India vix Represent the volatility of the index future in India
- Implied volatility represents the volatility in the underlying index future.
- Implied Volatility is the total up or down move expected in the index futures derived from stock options price.
- If options traders pay more to buy the options and option sellers demand more for selling an option, option price increases.
- In this case the implied volatility increases we can expect the large movement in stock future price.
- If option buyers are not paying more and option sellers are ready to sell at lower cost option price decrease
- In this case, the implied volatility decreases and we can except small movement in the stock future price
- Implied volatility represents standard deviation one year change in stock price
- For Example stock price = +_(stock price x implied volatility)
- If the stock price is 97.5 and its implied volatility is 44% we can expect the one-year trading range between 54.6-140.
- If the stock price is 42.25 and implied volatility is 18% we can except the one-year trading range between 34.65-49.85
- Stocks with high implied volatility have large trading range
- Stocks with low implied volatility have a small trading range
- To calculate the trading range for 30 days using implied volatility we use this formula
- Formula to calculate the trading range for x no of days
- = stock price x implied volatility x Square root of (no of days/365)
- For example, if the stock price is 250 and implied volatility is 15% trading range for 30 days is equal to plus minus 10.75

### why implied volatility changes we need to find the answer?

- Implied volatility increases or decreases due to the sudden increase or decrease in the demand and supply of Call or put option.
- If the out of the money put option implied volatility is more than the out of the money call option, implied volatility increased in the put side.
- If the out of the money call option implied volatility is more than the out of the money put option, implied volatility increases in the call side.
- Implied volatility also has its range called the lower range and upper range
- When the implied volatility is at the lower range it is advisable to buy the options
- When the implied volatility is at the upper range it is advisable to sell the options
- Professional traders trade on both sides
- When implied volatility at the lower range Professional traders buy options
- When implied volatility at the upper range Professional traders sell the options
- They always trade with the trend of the market
- If the stock market in a downtrend - implied volatility is high they prefer to sell call options
- If the stock market in a downtrend - implied volatility is low they prefer to buy put options
- If the stock market in an uptrend - implied volatility is high they prefer to sell put options
- If the stock market in an uptrend - implied volatility is low they prefer to buy call options
- Always remember that option sellers are more intelligent than options buyers they only sell when they get high premium
- Option sellers take an unlimited risk and it takes large sums of money to sell option
- When the demand for options increases implied volatility increases
- When the demand for options decreases implied volatility decreases
- Therefore when the implied volatility of call option is more than put it suggests that professional traders are selling the call options.
- If professional traders are selling call option it suggests us that the market will face resistance at that level.
- When the implied volatility of put option is more than call options it suggests that professional traders are selling the put options.
- If option sellers are selling put option it suggests that the market will take support at that level.
- Higher the implied volatility - higher the premium - higher the premium - higher the profit for the option seller.

### Procedure to predict yes bank share price

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