Bankex Put Sees 14,700% Surge During BSE Expiry Session
· Business · Economic Times
An unusual spike in Bankex options marked Thursday's expiry of BSE derivatives contracts in Mumbai, sending traders scrambling during the newly introduced Closing Auction Session. Most notably, the Bankex 65,000 Put expiring on Thursday surged from ₹6.65 to ₹987, a jump of nearly 14,700% within minutes. The move came as indicative closing levels during the auction briefly pointed to a near 3% decline in the Sensex, sharply steeper than its fall before the session began. The sharp drop sparked panic among derivatives traders, triggering stop-losses and adding to the volatility. Several other Bankex put options around the 65,000 strike also witnessed sharp spikes, with premiums jumping between 500% and 4,500%, leaving several options sellers facing heavy losses.
Why it matters
Derivatives traders and options sellers faced heavy financial losses following unexpected expiry-day volatility and sudden premium jumps during the closing auction session.
Read the original report — Economic Times
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