Wednesday, 24 February 2016

EXPIRY SPECIAL OPTION TIP SCAM Exposed



After our last expose post on Stock Tips Free Trial scam time I hope investors and traders benefited by avoiding such scamsters.

The menace of these tippers has been increasing more and more and to counter that we must build up awareness among Investors and Traders.

There is a new style of scam that is operating in the Market and it is called the EXPIRY SPECIAL.
As and when we near an expiry date of an derivatives contract, e.g. tomorrow 25th Feb is the expiry of February Series of Future & Option contracts there are large number of messages to traders and investors about a Jackpot Call in Options Segment which ofcourse is expiry special and they make claims such as make 10 lakhs with investment of around 20000.

The modus operandi is quite simple: These SMS messages are sent to lakhs of traders and investors, once you call on the number mentioned in the message they would confirm that you will be trading their jackpot call and once you confirm that you are ready to be conned.

To posture themselves as legit advisory subscription beneficiaries they will ask you to share 20% of the profit with them once you have booked it.

On the expiry day the process starts, They pick one stock which is not very liquid in options space, Last time on 28th January 2016 which was the expiry day for January Series these guys picked South India Bank.

South India bank for instance was trading at a price of around 18.50,its the expiry day the 15 strike price put of South India Bank has no volume or pending orders, These guys place a huge sell order for South India Bank 15 Put at 5 paise. Minimum lot size is 22000.

Now the next process is to send the jackpot call to the traders/investors (cattle ready to be butchered).
On a lotsize of 22000 one lot at 5 paise will be valued at 1100 so The Message will ask you to buy 50-100-200 lots of South Bank 15 put options which will cost you only 55000 for 50 lots and the target was more than 50-70 paise in Intraday so that means you are going to gain a return of 900-1300% in Intraday.

Once this message is delivered to lakhs and lakhs of traders, Greedy people will start buying the Put Option.

Remember, the scamsters HUGE SELL order? They are writing the option calls because South India Bank is not going to fall below 15 in the trading day at all since there are no possibilities for it to lose so much when market is stable.

It is sad to know that South India Bank 15 Strike Price January Series Put on expiry day of 28th January had a volume of 3830 lots which means 22000 * 3830 = 84260000 * 0.05 = 4213000 pocketed before taxes and other charges once the option is exercised at ZERO by the exchange.

Yes that is how you they earned 42 lakhs in January and this was their under-performance, In earlier instances these OPTION MAGIC CALLS used to get much more volume say almost 7500-8000 lots, Means these guys made crores.

Urging Investors & Traders to wake up and reform themselves against the VERY IDEA of becoming rich overnight by juggling in risky stuff like options.

I am not saying Trading is BAD, or all advisors are bad, Or All Option Calls are bad, But please do use your brains before jumping into such JACKPOT EXPIRY SPECIAL trades.

Tomorrow is expiry day (25th Feb) and again Jackpot Option Expiry Specials are going to be floated in the market so please beware and don't participate.

Here is a screenshot of the south bank message last expiry :-

Here is a screenshot of NSE BHAV COPY for South Bank 15 Put option on expiry day on 28th Jan showing 3830 contracts traded :-



24 comments:

  1. Great Work Prem ji....
    wanted to ask u abt ur old stock "waterbase"
    which appreciated almost 3 times in a span of 4-5 months but now back to previous level of 60s
    what will be ur current strategy in waterbase if one holding it from 45 level
    Hold/Sell or BUY more.

    ReplyDelete
    Replies
    1. I have already expressed my opinion to hold only free shares, I think you should be holding only free shares in a stock which has gained more than 60-70% and cut holding further if it goes up 200%.

      Delete
  2. good job guys in educating unsuspecting investors and traders

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  3. Mr. Prem, you are doing good job for investors and traders, thanks a lot.

    ReplyDelete
  4. Great idea adopted to earn money...............ha...........ha....

    ReplyDelete
  5. Really Very Nice Work By You Prem ji.. Thanks For Eye Opening...

    ReplyDelete
  6. Good information and alert....thank you

    ReplyDelete
  7. Agree... good work .. some similar kind of modus operandy Special Astro Call In Banking & Pharma Sector.Trade In Options In 1 Lac and Earn 5 lacs In 2 days Holding.Call Now For Options call 08108237850

    RS20625 PROFIT BOOKED IN NIFTY OPTION 7400PE BUY AT 80 TGT HIT 135 IN 5 LOTS. CALL: 08750116554/ 9894421555/9894359692. WWW.OPTIONTIPS.IN

    ReplyDelete
  8. This Time These operators have sent IFCI 15 PE.
    See Change in OI is 3,02,60,000

    ReplyDelete
  9. This Time SMS is For IFCI 15 PE . Change in OI is 3,02,60,000

    ReplyDelete
  10. Today: IFCI 15 PUT and SOUTHBANK 20 CALL were given as Expiry Special calls by SMS.

    Total Traded Value: Rs 66,33,400.00

    Almost 67 Lakhs Looted from Retail Traders.

    ReplyDelete
  11. Very good article, people ignore the facts and fall pray to such scams, only reason to fall pray is Greed, yesterday IFCI spot closed at 20.45, today being last day of expiry to encash 15PE there should be fall higher then 25% to 30% then only put will give return to investors who bought 15 PE of IFCI, this kind of fall happens only if there is bad news like it was in Satyam few years back or entire market hits lower circuit and such conditions occurs once in blue moon not every expiry. Handful people for personal gains are creating bad name for entire advisor community.

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  12. Are they Financially strong enough to make a SCAM by investing 3-5 crore and earn 42 lakhs?
    The margin requirement for selling Options are huge.In this case it roughly between 3-5 Crores.I dont think any Individual could do this. might be a SCAM by DII/FII's

    ReplyDelete
  13. Thanks for taking your time to write this article..

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  14. sir i am stuck in sunteck reality ; it is at 5 year low ; should i sel out or average it

    ReplyDelete
  15. Sir can you please share your view on Granules India

    ReplyDelete