Hedge funds making billions off Indian option traders

[lfromnj]

https://www.economist.com/finance-and-economics/2024/05/02/hedge-funds-make-billions-as-indias-options-market-goes-ballistic


https://economictimes.indiatimes.com/markets/options/indias-options-trading-boom-hides-billions-of-losses-for-retail-traders/articleshow/107653413.cms#:~:text=The%20average%20time%20an%20Indian%20trader%20holds%20an,from%20mutual%20fund%20provider%20Axis%20Asset%20Management%20Co.

Instead they’re engaging in pure speculation. The average time an Indian trader holds an option is less than 30 minutes, according to data from mutual fund provider Axis Asset Management Co.

[lfromnj]

Sounds great, can't see how this can possibly go wrong

Its just nature healing. India has its extractive scam institutions to bring dollars into their economy and we have our extractive hedge funds to bring the dollars back

The funniest thing about all this is that the Indian market has actually been on a very solid bull run. Tata Motors for example went from 100 rupees to 1000 rupees in 4 years and still maintains a healthy P/E ratio. If people just bought and held 1 month out options they would have made pretty decent profit. Obviously holding an option for a single day is just praying on the pure randomness of the market. 30 minutes is even worse.