India’s new closing-auction system is triggering extreme volatility in the options market, with prices swinging sharply within minutes. During the first monthly expiry under the new system at BSE, a Bankex put option surged nearly 4,000% from Rs 1.70 to Rs 68.55 before crashing to zero, all within 15 minutes, highlighting the risks of compressed end-of-day trading.
India’s new closing-auction system is triggering extreme volatility in the options market, with prices swinging sharply within minutes. During the first monthly expiry under the new system at BSE, a Bankex put option surged nearly 4,000% from Rs 1.70 to Rs 68.55 before crashing to zero, all within 15 minutes, highlighting the risks of compressed end-of-day trading.
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