Last Friday, there was quite a commotion in the stock market as the Sensex 67000 call option experienced an unexpected surge in its premium value, briefly skyrocketing by a whopping 50-fold during the trading day. To be precise, this unusual event occurred at 11:02 am when the option contract’s price per share shot up from a mere Rs 4.3 to an astonishing Rs 209.25. Yes, you read that correctly – the premium surged to Rs 209.25 in just a minute. However, it was later revealed that this surge was not due to any significant market development but rather a “fat finger error” that took place during the Friday session on the Sensex call option with a strike price of 67000.
A subsequent report shed light on the consequences of this error, revealing that a trader suffered a substantial loss of Rs 78 lakh as a result. Naturally, this incident sparked intense curiosity among traders who wanted to understand what exactly transpired in the Sensex 67000 CE and what caused this significant error. In response to this interest, we have put together this article to provide you with the details.
SENSEX 67000 CE
According to the reports, the error can be attributed to a sudden and dramatic swing in the premium price that lasted only a few seconds. Subsequently, the prices returned to their normal levels. It appears that an individual placed an order to purchase the Sensex call option at the 67000 strike price when the premium was trading at an unusually low range of Rs 4 to Rs 5, primarily due to the earlier mentioned fat finger error. However, this order caused the Sensex call option price to momentarily surge to Rs 209, which resulted in all sell orders being executed at this unexpectedly high level.
A Twitter account named “SOAMJENA,” which focuses on market news, took to social media to express their concern, stating, “-80 lacs showing when profit should be approximately +30 lacs, and their customer care seems to have no understanding of limit orders.” This error was later dubbed the “Zerodha glitch.” Numerous traders reported on Thursday that they were unable to exit their Sensex call options on the Zerodha platform, attributing the issue to problems with internet service providers.
In response to the growing concerns, Zerodha addressed the error by pointing to issues with internet service providers. On Thursday, Zerodha took to Twitter and posted, “Due to an issue with the internet service providers (ISPs), the orders of some of our users in the BFO segment were affected. Trading in the other segments was unaffected. We are working on updating the status of the affected orders. We apologize for the inconvenience caused.” One trader, frustrated by the Zerodha Glitch, claimed, “I did not sell Sensex 65800 CE, how did you people punch a sell order after market hours?” Zerodha responded to this trader, instructing them to raise a support ticket for further assistance.