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Ahmedabad: The stock market is a game where a roadie can become a millionaire in an hour and a millionaire can become a roadie in an hour. On the expiry day of Nifty50 on 12th September, such a game happened that a call option of 25 paise reached Rs. 123. This is not possible, but if someone bought it for 25 paise and sold it for around Rs. 120, he would have been a millionaire today. Many roadies have become millionaires in this one-hour game.
Yesterday (12 September 2024) after 2 pm, tremendous movement was seen in the stock market. Nifty50, which was standing around 25,000 since morning, crossed the level of 25,400 in just one hour. Similar strong movement was seen in Sensex and Bank Nifty. Nifty50 also had an expiry yesterday. Those who do not know about options and futures in the stock market may not even know about 'expiry'. We will tell you about both of these, but before that let us tell you that in tomorrow's market, many kings would have become kings and many kings would also have become paupers.
In just one hour, such a move was made that a call option of 25 paise reached Rs 123. This was a move of 49,100 percent. If a person had invested even Rs 1 lakh in this move, his money would have become Rs 4,91,00,000 (4 crore 91 lakh).
People working in the stock market have many ways to invest money. Investing in equity is the most common way in which you buy and hold shares. You can keep it with you from 1 day to months or years. The second way is Futures and Options (F&O). Futures and options are also two different things, which can be traded separately. You need a lot of money to trade futures, while you need very little money to buy options. More money is required to sell options. In such a situation, small investors are often attracted to buying options to get big profits by investing less money.
While buying an option you have to put money on a call or a put. If you put money on a call and if the market goes up you will make a profit and if the market goes down you will suffer a loss. Similarly, buying a put gives you a profit when the market falls. Buyers suffer a loss when the market goes up.
The magic of the call worked –
The stock market witnessed a big jump on Thursday. This move will give a return of thousands of percent to the people who bought the call. However, the returns depend on where the trader bought and where he booked his profit. There is a saying in the stock market that one can neither buy at the bottom nor sell at the top. All traders enter somewhere in the middle of the price fluctuations and exit somewhere in the middle after booking a profit or loss.
Yesterday, there was a weekly expiry of Nifty50 in the stock market. There are two types of expiry – monthly and weekly. Weekly expiry of Nifty50 is on every Thursday, while monthly expiry is on the last Thursday of every month. Most people prefer to trade on weekly expiry because the premium is low in weekly and trade can be done with less money.
The story of how it was made or lost is as follows-
Yesterday Thursday (12th September 2024) it was around 1:55 pm. Nifty50's Rs. 25,300 (strike price) call was 25 paise. Those who sold the call at the upper price were waiting for the price to go to zero, because the maximum profit of the call seller will be when his premium is exactly zero. But perhaps they did not know that the market is not going to make a profit but a huge loss. Those who bought the call were disappointed that its price was 25 paise, while the market has given them so much profit that they have become millionaires.
Yes… a Rs. 25,300 call which rose from 25 paise to a peak of Rs. 123 within 1 hour. Later this call closed at Rs. 89.15. If calculated in percentage terms, this call saw a jump of 49,100 percent. However, it is unlikely that someone would have invested Rs. 1 lakh at 25 paise. But if someone had invested, he would have been a millionaire today. It is also unlikely that the trader would have lost out at Rs. 123. If it was sold for more than Rs. 100, there would have been a profit of about Rs. 4 crore.