Rohith very sad to hear such stories, atleast SEBI should reverse the TER back. Never seen such open manipulations in my life.
2 Likes
I tried to do the math based on volume data available on fyers. Zerodha doesnāt have the correct data.
- Total money involved is around 30 to 58 crores (as per volume data).
- The pump & dump used upto 30 crores to pump, to trigger SL around 600-700 range. Loss may be anywhere between.
- they placed SL-Limit sell orders above 700, so they will take the position when the retailerās SL is triggered. Because it SL-Limit they might have collected a premium between 700 to 1900.
- In the next minute, they covered all their position in the range of 350 to 550.
As per my estimate in 2 mins on investment of 30 to 58 crores, they made a minimum of 50 Lacs ,assuming they averaged a profit of 100 rupees minimum per option (2500/lot minimum profit).
As there are no circuit limits on option price movement and due to margin policy the volumes must have reduced in options, more repeat freak trades should be expected.
Because in 2 mins, using 30 crores you can make 1 crore or more! SEBIā¦ he heā¦
2 Likes
DR bro,did u really think the Big guys selling options at 100 percent margin are doing it to earn decay?? Of course not. .that was us trying to use hedging, sl etc for meager gains. For these guys itās peanuts, they will only sell if now they can manipulate the market using that power of sell. So sell per say is not earning for them anymore, manipulation using monopoly in selling is helping them.
2 Likes
Yeah I do straddles but i donāt have a fixed timeā¦ Depends on the market conditons
Here is whatās gonna happen guys, 2, 3 more freak trades and zerodha will ban sl m orders, nithin will write a big note on it, retailers will settle with sl- limit orders. SEBI will have the monkey off their back. End of story.
Margin aināt comin back. .
1 Like
Did you get answer ?
Answer to what bro. .
1 Like
I guess it should be based on absolute value, for 400 rupee option 30 to 40 rs is more than enough, for 100 rupee option 10 to 20 rupees should do, said that these donāt guarantee anything. Hope NSE will do something about these, we are considering on blocking slm going ahead or do some variation with current slm.
3 Likes
These are slm orders, nothing can be done from us, either we block them or make sure sll is placed with some considerable difference.
3 Likes
Right, for now try only sl limit orders.
1 Like
RMS square off wonāt happen because of these freak trades. No need to worry.
3 Likes
Sad to hear that, but please going ahead use only SL limit orders.
2 Likes
Sll with considerable difference would be better. Any updates on that ?
1 Like
Gp bhai dont put too far away, that too will cause dent, use say 10 percent max 20 pecent range.
Example for a 250 rs option use 300 limit for buy and 200 limit for sell
@siva I have a doubt regarding sl limit ordersā¦ Suppose I buy a stock at 100 rupees with sl trigger at 95 rupees and and limit at 90 and stock goes down suddenly from 96 to 89 which is out of the range of my sll so, my sl wonāt hitā¦ But again the stock comes in the range of 90-95 so then my sl will hit or not?
1 Like
Rohith u have misunderstood sl limit order,
Rule of thumb - in BUY limit must always be above the price you wanna buy at(Trigger)
In SELL limit must always be below the price you wanna sell at(Trigger)
Example stock is trading at say 112. You wanna buy when it reaches 150. So you set trigger as 150 and put upper limit of say 50 points, so at 200 u set limit. Which basically means, I wanna buy only when reaches 150 but at no cost above 200.
So order will be executed anywhere between 150 to 200 but in no case will ever exceed 200.
Vice versa for sell.
P.S bhaiyo sell mai limit neechey lagti hai bhool na jaana
Example 100 pe sell ke liye limit price has to be below 100 (say 80).