Over the last 4 weeks we have seen the market volatility go up sharply as global uncertainty has increased. This is evident from the sharp rise in the NSE VIX which had crossed 20 before settling at around the 18 mark. But it is still highly susceptible to sharp spikes. In this kind of a market, trading either on the short side or the long side can be fraught with risks. It is highly likely that even when your view is right, the stop losses may get hit before your targets are realized. So how should one approach this kind of market and what should be the ideal strategy for this market? The answer to this question may lie in playing on volatility. For example when you know that a particular stock is likely to break out sharply but you are not sure whether it will be on the upside or the downside, what do you do? The answer could lie in creating a strangle strategy. You can do this by simultaneously buying a call and a put option on the same stock. Let us understand the strategy a little better...