Historical Volatility (HV) quantifies the actual moves of an underlying
Implied Volatility (IV) quantifies the expected/implied moves of the underlying over the period of expiration.
Coming to the favorite underlying of them all, the $BankNifty, also the topic of discussion due to its popularity created by the presence of cheap weekly options.
Can you see any premium of the IV over the HV even with this one?
So what makes so many traders rush in to trade the $BankNifty weeklies?
Weekly expiration cycles presents unique trading opportunities in itself.
With a one week life-cycle, pretty much the entire monthly expiration can be traded in super fast forward. ⏩