Trader’s Big Claim: Rs 1,000 Turned into Rs 20 Lakh in a Day on Kotak Bank

Kotak Mahindra Bank’s share crash took place, benefiting a trader who used put options. The bank was recently barred by the RBI from onboarding new customers online and issuing new credit cards, leading to a 12% share price decrease. The trader purchased 18 lots of the bank at a low price, which resulted in significant gains. An options trading chart shared by a trader handle, OptionsAlgos-Quanta, claimed that an insider bought several lots of KOTAKBANK April 1700 PE at just Rs 1,000 and made gains of around Rs 20 lakh.

The short contracts appreciated between 104-71,600% before expiring. Moneycontrol reported that KOTAKBANK APR 1700 PE went from 20 paise closing on Wednesday to Rs 60 on Thursday, a rise of 71,600%. The sudden shares crash triggered a sharp rise in the options premium, explaining the high gains.