Daybreak The mystery fund that played God and wreaked havoc on the stock market
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Jan 1, 2026 Anand Kalyanaraman, an investigative journalist known for his work on India's options market manipulation, reveals shocking insights into a massive alleged scheme. He explains how a mysterious fund manipulated expiries to guarantee profits, leaving regular traders in the dust. Anand breaks down concepts like 'violent' and 'quiet' expiries, providing a technical look at how these strategies operated. He discusses the implications of the landmark case with SEBI and Jane Street, highlighting the potential for significant transformation in market integrity.
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Options First, Cash Market Second
- The manipulator flipped the normal relationship by taking options positions first and then moving the cash market.
- That reversal let option bets dictate cash-market moves rather than the other way around.
Violent Expiries Amplify Option Gains
- Violent expiries involved buying large option positions and forcing big cash-market moves on expiry day.
- That allowed the manipulator to amplify option gains by creating corresponding moves in the underlying index.
Quiet Expiries Keep Premiums For Seller
- Quiet expiries involved selling options and manipulating the index to finish flat so sellers keep premiums.
- Retail buyers systematically lost premiums when the index was engineered to stay unchanged.