How This Trader Went From Rs 60,000 Loss To Rs 3.5 Lakh Profit In 42 Seconds – News18

Stock market is a place where some of the biggest financial miracles take place, in a matter of minutes at times. Recently, a 25-year-old derivatives trader named Kapilan Thirumavalavan witnessed one firsthand. When he started trading on the morning of September 21, his capital was running at a loss of Rs 60,000. Within 27 seconds, the tables turned and Kapilan made a profit of Rs 3.5 lakh. Kapilan had purchased 2000 sensex call options with a strike price of 67,000.

He chose to increase his position by another 1000 call options at the same strike, bringing his total to 3000 at an average cost of Rs 4.45. This investment, made at 11:02:08 am, was one that Kapilan did not have much hope for. He had decided to exit the market, even though there were still about four and a half hours left in the session, as it was expiry day. Kapilan needed a miracle to break even on the transaction, much less turn a profit.

A miracle did take place, in the next 27 seconds itself. Kapilan sold 2000 call options at a price of Rs 209.25 and earned a profit of Rs 4 lakh. There were still 1,000 calls available, and his algorithm advised him to sell them at Rs 194.60 each. Prices have started to decline almost as quickly. Kapilan made the quick decision to sell the final 1000 for the highest price he could. He was successful in selling them for an average of Rs 9.35. Kapilan went from having Rs 60,000 in credit to having about Rs 3.5 lakh in just 42 seconds.

Kapilan said in an interview with Moneycontrol that after seeing the rising prices, he thought that there was some problem with the software of the broker and that the case was fake. He likened the situation to having had an unknown man leave a bag full of currency notes at your doorstep and disappear. He said it took him a while to realise that a real miracle happened.