Yes, He is selling options. I have seen one or two videos on YT. He sells deep ITM positions aggressively. Margin required is huge which he reduces by buying a few options to get margin benefit.
@nithin Apologies for deviating from the topic slightly, but I couldn’t find any other way(despite 20 or so common connections on LinkedIn). I am a strategy prof at IIM Kashipur who teaches platform business models. I believe that your move of verified public PnL statements is a game changer with multiple implications. I want to convert it into a case study. If you are up for it, could you please ask anyone from your team to connect with me in LinkedIn. I can be easily searched by googling ‘Vivek Kumar strategy IIM Kashipur’. Many Thanks.
broadly can you quote why is it a game changer ?
@viswaram I am talking from a platform business point of view only, not trading in general despite the two being intertwined here. There are two competing aspects for any platform: (1) maintain the platform such that only ‘high quality’ users remain on the platform. (2) Increase user base as platform effects become stronger when users are more in number. These two aspects are competing because doing one slows down the other. Nithin’s move while will increase quality of users, it might slight decrease number of users. This is a bold move which may have short term negative implications for business despite being useful for the society in genral but big positive in the long term for the business as well as the society. Nithin, of course, already knows this and has talked about on these lines in the past.
This is what I could say broadly. Sorry if I am still not very clear. If the case get published, I may share it here but don’t hold your breath as it is a long drawn process.
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We had shared this on social media yesterday.
https://twitter.com/Nithin0dha/status/1696854528186863884
So, one other potential loophole here was that for stocks that are transferred in from other brokers, we allow the customer to enter the buy price for the stock and to be able to calculate the P&L. Since the buy trade is with another broker, it is impossible to validate if what is entered is genuine or not. Someone could enter a much lower price and hence game the verified P&L.
This is possible only in equity delivery trades and hence equity P&L only. In F&O, positions can’t be transferred from one broker to another, and hence F&O P&L can’t be affected.
But since there is no way to verify buy trades done at another broker for all stocks transferred into Zerodha we are removing all such trades from the Verified P&L page starting now. Verified P&L will only include P&L of those trades (buy and sell) done at Zerodha.
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Let us keep things simple with more clarity. Let me tell you a real story, the ground reality.
Last month a poor guy who delivers my lunch everyday told me that someone is insisting him to open a demat account and trying to convince him that he can make good money if he opens the account through him. He asked my opinion, “ should I”, as he knew that I am into stock market. I said “No, answer me 3 things 1) is that guy who is offering you a profit, himself making profits ? 2) If yes then why is he into convincing and insisting business? 3) are you willing to and capable of being among the top 1- 10 percent in the market ? “ he said “ I do not know”. I said “ Do things which you know”…
Thank God he decided to have some clarity thus came to me , he was saved from being trapped.
@Nithin as you said “this is how market grew” but please do not ignore that there is a DARK fact behind this crowd gathering in market in last few years. Innocent people are getting lured into market just because of this referral benefit scheme by SELFISH people.
WE hear so many news about losses, ruins even suicides by helpless immature people. who is responsible for dragging every tom dick and harry into market?
Moreover as you said “verified pnl cannot be tampered” although in the “clone app” circle the claims are just opposite, I am wondering that how many among the average retail traders who can be easily trapped by fraud influencers are capable of verifying the link itself before clicking!
We are taking action against any clone apps out there. If you have any links, do share here.
We recorded a conversation yesterday with Abid @Sensibull and Sandeep from Finec Law. Sandeep had this very interesting thing to say.
Ultimately, the regulator’s job is to remove ignorance from the market and not stupidity
In a way, our job as a platform is also to do that. If someone wants to be stupid, I don’t know what more we can do.
About the affiliate links itself, we will have to wait and see how the regulations play out. As I mentioned earlier, can’t really take a stance on our own. And the changes expected are not too far away.
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I created a verified PnL link for this month (August). When I generate a new link next month, it seems the link for August will no longer be active.
Could you fix this?