While the Sensex was busy throwing a 2,000-point party on the Indo-US trade deal, clients of one well-known brokerage were venting their fury over an app glitch that froze them out of Tuesday’s trade. Many took to social media to air their frustration. But market gossip suggest something else too. It appears that some clients had sold out-of-the-money Nifty put options on Monday and were stuck in those positions when the app jammed on Tuesday morning. Selling put options lets traders pocket a fee upfront, betting the market won’t fall and benefiting most when prices rise. When the index opened sharply higher, the value of those puts collapsed. By the time the app came back to life, the options were worthless and the traders got to keep the entire premium. A tech failure, it seems, quietly turned into a windfall for a fortunate few.
(For more on our weekly roundup of wackiest whispers and murmurs in corporate corridors & policy parlours, pick up today's edition of The Economic Times newspaper)
Suits & Sayings
(For more on our weekly roundup of wackiest whispers and murmurs in corporate corridors & policy parlours, pick up today's edition of The Economic Times newspaper)
