How Jane Street Tricked Indian Markets To Make Rs 43,000 Crore In Options Profit

As per the SEBI interim report, an analysis of Jane Street’s trading on Jan. 17, 2024 and 14 other Bank Nifty expiry days, showed the following pattern and strategies.

The First Strategy

– It would on the morning of expiry aggressively buy large amounts in Bank Nifty underlying stocks/futures.

– It would on the same morning sell Bank Nifty via index options.

– In the afternoon, it would aggressively sell large amounts of Bank Nifty underlying stocks/ futures.

– At peak short position in the Bank Nifty index options segment results in profits from the softer close in Bank Nifty index.

The Second Strategy

– Jane Street would, in the last two hours, aggressively sell large amounts in stocks/ futures/Bank Nifty futures.

– Short positions in Bank Nifty Options at close.

– Profits would be aided by soft close in Bank Nifty options.