What is the VIX and how does it affect index trading?

When VIX spikes, option premiums expand significantly. Consider selling options when VIX is high (expensive) and buying when VIX is low (cheap). Also, a VIX spike often marks near-term market bottom.

India VIX measures expected volatility for the next 30 days. High VIX (above 20) = market fear, wide swings expected. Low VIX (below 12) = complacency, smaller moves.