India options trading drops 27% as new auction upends strategies

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It's very risky now , specially on expiry days , the index band is set at 3% , what if it closes 2% up or down in the last 15 min on a expiry day . Won't give you time also to manage your positions . Hope the volume drops more .

IV shoots up for this very reason. BSE cas is far more unstable in my opinion than NSE. You can track indicative closure by looking at implied futures which track well, and quite frankly on expiry it's the same as before since the number sensex showed was different from the settlement price which was anyway tracked with the future. Is it a good system? Probably not, but we don't choose the system, and crying about it has no benefit so we must adapt to survive.

No ones crying about it , there are a lot of other securities available , choosing what and when to do is in my hands . I personally feel the selling Index options might result into losses due to the added uncertainty and I hope I am wrong .

First week of cas, nifty and sensex both hit 80+IV at 3:15, selling options was net profitable. This week, nifty IV at 3:15 touched 35. Market makers are pricing this risk in, so that even if a 2% move comes, it is not catastrophic You're not crying about it, but on reddit and twitter as a whole - it looks like a meltdown.