{
  "id": 6692875,
  "title": "Sensex options swing sharply as 74,800 call jumps 340% during auction",
  "url": "https://urgent.news/2026/09/11/sensex-options-swing-sharply-as-74-800-call-jumps-340-during-auction",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T02:27:43.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/sensex-options-swing-sharply-as-74800-call-jumps-340-during-auction/article71454566.ece"
  },
  "original_language": "en",
  "account": "On Thursday, the contracts for BSE Ltd.'s Sensex Index witnessed a dramatic surge of over 300% in the 20-minute auction period before plummeting within minutes, underscoring the turbulence plaguing India's derivatives market since its inception last month. During the brief window, the 74,800-rupee strike price call option of the index experienced a staggering 340% surge as indicated by the bourse data, which noted a significant jump of up to 1.4% in the index. The 30-stock gauge eventually closed the session 0.2% higher, reversing an initial loss of 0.2% prior to the auction. The shift in momentum also caused the prices of 74,900-rupee and 75,000-rupee call options to momentarily skyrocket more than 200% each. All three contracts ultimately closed in the red for the day. The price fluctuations in the options minutes before their settlement intensify the pressure on India's market regulator to resolve such episodes. The watchdog recently announced that it would release a discussion paper within a week to determine settlement prices for futures and options contracts, following concerns raised by market participants. One area where the market-wide effect became apparent was in the price of the at-the-money straddle, which involves buying and selling both put and call options simultaneously. The straddle's price briefly surged 14% from the previous session, an unusual occurrence given that such instruments typically decline to zero gradually throughout the day. The system, designed to align India with global standards and curb manipulation, has encountered challenges such as thin liquidity, low participation and allegations of market manipulation. The volatility is primarily due to a discrepancy in how the cash equities and options markets close. Stocks with derivatives tied to them receive their final prices via the auction, while options continue to trade while this process is still in progress. Since some expiring options trade at almost no value, even a minor movement in the underlying index can transform a worthless contract into a substantial winner, only to become worthless again minutes later.",
  "summary": "Sharp price swings in expiring contracts have renewed concerns over India’s derivatives settlement system and the mismatch between cash and options markets",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}