Not to nit pick the great write up and well detailed points but there are plenty of reasons to recommend a call option over the stock. Investment needed is much less and risk is limited to the relatively smaller invested capital. If it's a short term momentum/speculative trade. Buying calls hedges a short position on actual stock (not the case here though). Call spreads are especially used opportunistically to take advantage of earnings announcement. Simply choosing a call option over the actual stock is not unethical/immoral.
Classic case of front running. There was a similar case with a CNBC anchor (Hemant something) too who used his relatives account to front run stocks that they were going to advertise on their show. The day white collar crime gets treated as regular crime with harsh jail time is when such things will slow down until then greed, for lack of a better word, is tempting.
Wow. I've been telling these and will show this also to my wife who has recently started following some daily telegram recommendations to buy scrips I haven't even heard of. (Though in very miniscule qty)
Certainly not as LOL as YouTube pump and dump, but still it's a little LOL worthy if we consider that these are SEBI registered people who did this, and all that for what ?
Won't they make more money just from appearing on Zee or just keep doing their work?
Another question I had is how did SEBI catch this thing, I mean Nirmal guy was certainly careful to do it via different accounts, the amounts were comparatively small like 2 lacs
But then I realised, it wasn't as active, like people won't be lining up to get derivatives of these stocks right? Is it something like wearing red at a funeral where everyone is wearing white and you'll be sticking out?
Not to nit pick the great write up and well detailed points but there are plenty of reasons to recommend a call option over the stock. Investment needed is much less and risk is limited to the relatively smaller invested capital. If it's a short term momentum/speculative trade. Buying calls hedges a short position on actual stock (not the case here though). Call spreads are especially used opportunistically to take advantage of earnings announcement. Simply choosing a call option over the actual stock is not unethical/immoral.
Classic case of front running. There was a similar case with a CNBC anchor (Hemant something) too who used his relatives account to front run stocks that they were going to advertise on their show. The day white collar crime gets treated as regular crime with harsh jail time is when such things will slow down until then greed, for lack of a better word, is tempting.
Wow. I've been telling these and will show this also to my wife who has recently started following some daily telegram recommendations to buy scrips I haven't even heard of. (Though in very miniscule qty)
Nice one.
Certainly not as LOL as YouTube pump and dump, but still it's a little LOL worthy if we consider that these are SEBI registered people who did this, and all that for what ?
Won't they make more money just from appearing on Zee or just keep doing their work?
Another question I had is how did SEBI catch this thing, I mean Nirmal guy was certainly careful to do it via different accounts, the amounts were comparatively small like 2 lacs
But then I realised, it wasn't as active, like people won't be lining up to get derivatives of these stocks right? Is it something like wearing red at a funeral where everyone is wearing white and you'll be sticking out?
Love reading your work, great stuff
They thought they pulled a 300 IQ move but SEBI brought the hammer down on their scam. A rare win for regulators