Day Trading Stocks & Futures

[trendtrade]

How an acquaintance lost 74% of his capital in just 2 days by selling Infosys options as suggested by P R Sundar on his YouTube channel


https://medium.com/@tradingquacks/h...ing-infosys-options-as-suggested-2b291b6282ad

Trade Summary

What went wrong?

• Infosys shares surged by 20% in just 2 days
• Heavy losses in call options and minimal/negligible profit by selling put options
• While giving the LIVE recommendation on his YouTube channel, he didn't mention that the capital requirement could increase by 6–7x to manage the trading loss
• Somehow managed to infuse additional funds to meet the margin shortfall on Day 1, however on Day 2 due to lack of funds position was auto-squared off by the RMS team.
• P R Sundar seems to be operating with unlimited capital.. Thanks to continuous inflow of seminar income and YouTube subscription.
• He is still holding on to the trade without stop loss and hoping for the prices to fall like a gambler

14th July:

• PR Sundar demonstrated a live Infosys Earnings Trade Strategy on his youtube channel (
  )
• On the same day, he shares an update stating that his strategy has earned Rs. 4920 (>2% return on the deployed capital of Rs.~2 lac)

15th July: Infosys 8% up

• At 10.30 AM, he accepts that Infosys trade has gone wrong. But he decides to “wait a little more” instead of getting out of the trade. Yes, if he waits a bit longer, the trade may reverse. But few times it doesn't is when you lose 10R instead of 1R.

16th July: Infosys 13% up

• At 08.31 AM, he states that Infosys ADR is 12% up and will refrain himself from posting live updates as it involves “additional margin and risk”. Huh? Damage is already done!
• At 12.34 AM, he shares a screenshot stating that his loss is only 15k (as compared to 1.60 lac for others) despite 12% move on Infosys .. on account of adjustment trades he initiated out of public sight and has now decided to share it with his followers but with a disclaimer that it will need “additional margin”. 6–7x margin requirement of your initial trade. How is this disclaimer after incurring substantial loss and a screenshot after the act.. useful to the people who initiated the trade with him?
• It doesn’t stop here.. he goes on to mock people and advertise his YouTube channel subscription.

A charlatan (also called a swindler or mountebank) is a person practising quackery or some similar confidence trick or deception in order to obtain money, fame or other advantages via some form of pretense or deception. Synonyms for “charlatan” include “shyster”, “quack”, or “faker”. “Mountebank” comes from the Italian montambanco or montimbanco based on the phrase monta in banco — literally referring to the action of a seller of dubious medicines getting up on a bench to address his audience of potential customers.[1] “Quack” is a reference to “quackery” or the practice of dubious medicine or a person who does not have actual medical training who purports to provide medical services. — Source: Wikipedia
“The world of Twitter Traders has now become so fucked up, that these people are posting “MTM Screenshots with 1% return on capital almost on daily basis” claiming to have made real money (profit) from “trading” and inviting for seminar subscriptions without any SEBI regulations governing this framework. It appears a study needs to be undertaken by SEBI on the modus operandi of these Social media handles as it has exploded and there are even more scammers using this tool to scam.
Take the classic case of PR Sundar’s Infosys trade where he is stating his loss is only 15k on the call options he has sold, despite a 20% move in the underlying.
People are either totally dumb and don’t even realize that these screenshots and trading calls are an illusion too good to be true.. or these Twitter trades/trainers do realize the absurdity and literally have total contempt for the intellect of their followers. Unfortunately, a lot of people are still so dumb in general and still so uninformed in the Trading and Trading Education arena that they will probably STILL believe that this guy has some sort of trading talent. The even more crazy element to all of this is that this scumbag probably has multiple Accounts and he simply posts screenshots of the ones that are practically “making money.” This world is so fucked up!
Psychologically, people take comfort in giving snake oil salesmen their money. These salesmen will tell you to want to hear. They like to use fancy terms and graphs to show you how you can become the next big trader. They exploit our human vulnerabilities in that we think we are smart, optimistic, and good things will come to us. A psychology today article, “Why We Still Fall for the ‘Nigerian Prince’ Scam” talks about this. Folks, like me, that have been in this game a long time, just roll our eyes.
What most of these scammers have to sell are all smoke and mirrors. I will not go into their techniques here. There is plenty written on how scammers operate. To use a worn-out cliche, “there is a sucker born every minute”.
The take-a-ways from all this is obviously to be aware that there are lots of scammers out there trying to take unsuspecting new trader’s money. They will give false hope that you will become rich day trading stocks.
Absurd Tweets related to Infosys trade:

20% price movement within 2 days of selling call options

The invitation to execute the trade as recommended by him

Capital requirement

Initial profit of 2% was highlighted.. but neither the loss percentage nor the loss amount was highlighted subsequently

Admission of wrong trade.. but still held on like a gambler

Cya guys.. I’ll get back to you after doing some adjustments in private

Hey! I am back.. Look there’s only 15k loss.. Why are you losses running in lakhs?

Nevertheless Join my seminar and YouTube subscription and be ready to lose even more!

 

[vikas2131]

How an acquaintance lost 74% of his capital in just 2 days by selling Infosys options as suggested by P R Sundar on his YouTube channel


https://medium.com/@tradingquacks/h...ing-infosys-options-as-suggested-2b291b6282ad

I always tell people not to touch options selling. Unfortunate incident.

 

[mohan.sic]

Most traders are "engineers" or "pure science" or math grads first and CFA later. CFA is only required to fulfill SEC laws. No one really cares about the CFA degree. No one really cares about MBA either

If you are a math whiz, they wouldn't care if you completed your degree! This is specific for "trader" profiles.

Thats correct. Institutions dont recruit CFA's for trading. They are not preferred.
Even things like TA are least important. They prefer tech guys., math & stats.

 

[trendtrade]

How did Twitter's hackers do it? Here's one likely explanation

By Robert Hackett

3-4 minutes


Update: Twitter confirmed it believes hackers targeted employees with “a coordinated social engineering attack” that gave the hackers access to “internal systems and tools.”

Cybersecurity experts are speculating about the cause of a spate of high-profile Twitter hijackings that rocked the social media giant on Wednesday.

The accounts of many of Twitter’s most prominent users including former Vice President Joe Biden, Tesla CEO Elon Musk, and Microsoft co-founder Bill Gates posted fraudulent tweets intended to lure people into Bitcoin-related scams.

The growing consensus is that Twitter—the company, rather than individual users impacted—succumbed to a major hack. While the technical details of the latest breach remain unclear, the leading theory is that hackers gained access to an administrative “panel” used by Twitter employees to manage people’s accounts.

Screenshots of the purported panel circulated online in the aftermath of the hacking, as Vice Motherboard reported. Twitter has deleted the images, saying they violate the company’s rules about sharing “private, personal information” in tweets.

A source with intimate knowledge of the company’s internal workings told Fortune this theory was the likeliest explanation for the widespread account hijackings. The individual requested anonymity because of a lack of authorization to speak to press.

“Think of this like a web form,” the source said, describing Twitter’s technical infrastructure. Such tools enable the company's engineers to handle key operations—everything from account suspensions to advertising campaigns.

But these tools can also allow an attacker—such as a rogue, hacked or otherwise comprised insider—to "come in sideways" and send a tweet from any account, the source said.

Twitter did not respond to Fortune’s questions about the hack, and instead pointed to its public comments. In those comments, the company said it had temporarily disabled tweets and password resets by “verified” accounts while attempting to regain control, an unprecedented measure.

It’s unclear who's behind the hacking. The perpetrators may have at least been partly motivated by money, given their public posts requesting that Twitter users send them cryptocurrency.

"We’re looking into what other malicious activity they may have conducted or information they may have accessed and will share more here as we have it," Twitter said.


https://fortune.com/2020/07/15/twitter-hacking-how-they-did-it/

https://www.moneycontrol.com/news/w...rgeted-in-cyber-attack-this-week-5559731.html

Twitter says about 130 accounts were targeted in cyber attack this week

Last Updated : Jul 17, 2020 01:43 PM IST | Source: Reuters

In its latest statement, Twitter said that the hackers were able to gain control to a "small subset" of the targeted accounts, and send tweets from them.

Twitter Inc disclosed late on Thursday that hackers targeted about 130 accounts during the cyber attack this week, an incident in which profiles of many prominent personalities and organizations were compromised.
Hackers had accessed Twitter's internal systems to hijack some of the platform's top voices including US presidential candidate Joe Biden, reality TV star Kim Kardashian, former US President Barack Obama and billionaire Elon Musk and used them to solicit digital currency.
In its latest statement, Twitter said that the hackers were able to gain control to a "small subset" of the targeted accounts, and send tweets from them.
The company added that it was continuing to assess whether the attackers were able to access private data of the targeted accounts.
The high-profile accounts that were hacked also included rapper Kanye West, Amazon.com Inc founder Jeff Bezos, investor Warren Buffett, Microsoft Corp co-founder Bill Gates, and the corporate accounts for Uber Technologies Inc and Apple Inc.
Twitter reiterated that it was working with impacted account owners.
The FBI's San Francisco division is leading an inquiry into the hacking, with many Washington lawmakers also calling for an accounting of how it happened.
The law enforcement agency said that cyber attackers committed cryptocurrency fraud in the incident. Publicly available blockchain records show the apparent scammers received more than $100,000 worth of cryptocurrency.
"We're still in the process of assessing longer-term steps that we may take and will share more details as soon as we can," Twitter added in its statement.

 

[sridhga]

Thats correct. Institutions dont recruit CFA's for trading. They are not preferred.
Even things like TA are least important. They prefer tech guys., math & stats.

I do not know which institutions you are referring to. But my work experience in that field was in Salomon Smith Barney. CFAs are highly valued in mutual funds and prop desks managed by very large banks. I have friends working with JP Morgan, with whom I shared CFA notes. I quit CFA myself as I relocated and changed fields. It depends on the type of institution that you are looking at. I was once interviewed by a small Wall Street firm. I neither liked the interview with them nor their manager's mindset. I realised that there are many chop shops on the Wall Street. I did not join.

For trading on your own, you neither need a CFA nor a MBA. Some small prop desks work with you even if you are not a college graduate. But with large Wall Street firms, it does not work without strong education credentials in that field.

 

[siddhant4u]

Thats correct. Institutions dont recruit CFA's for trading. They are not preferred.
Even things like TA are least important. They prefer tech guys., math & stats.

up until 2007 it was mandatory to have CFA if you wanted to work in UK investment banking.

 

[Dr. Jan Itor]

DMart is a victim of lockdown.....but it has a great business model, it is profitable and well run company so I am staying invested.....

What is the fair value as per your analysis ST sir? And consequently, what level is a good entry point now that it is moving down?

 

[Smart_trade]

What is the fair value as per your analysis ST sir? And consequently, what level is a good entry point now that it is moving down?

Stocks never trade at fair value they either trade above the fair value or below the fair value depending on whether the market is in bull phase or bear phase.Considering the fundamentals of DMart,my estimate of fair value for it is Rs 2000....but as it is in lockdown,it will undershoot that level.Once company starts operating its stores,then share price will come to normal and even overshoot that level....how much down it can go depends on how long it takes to open its stores.Good entry point is buy in small lots in its way down....no one can catch exact bottom in any scrip...

Smart_trade

 

[midhoo]

Mostly Algo as well normal buying naturally happens when the options are trading at or below intrinsic value.

Above image spot is at 10728 which implies 10700 ce should not be more than 28 on expiry day, whereas it is trading at 39. This is the part i was referring you to observe. This is bcz the last 30 mts there was a fall in nifty and closing will be avg of last 30 mts. So even if nifty ltp during closing is 10728, the nifty closing will be adjusted to 10740 levels ( previous closing was same i guess). So market considering the closing 10740, will have 40 rs intrictic value for 10700 ce. Hence 10700 ce is trading at 39 rs.

I had no idea how the closing price calculated. Thank you for sharing the knowledge.

 

[midhoo]

Somebody please tell how can we interpret OI. I was analyzing like if OI is going up means more options are writing (Big boys are interested in that) and price may go opposite direction.