Sal

24 years in IT | ex-GE | ex-IBM | Traveller | Director -

[Sal @asksaleem]

@pranavvk @jitendrajain @BandiShreyas Gift city is offering 16x with tie up with a dubai bank, on 1M$. But the question is what would you do with 16 or 10x leverage? Where will you deploy so much money to generate alpha? Takes atleast 5 years to breakeven if you are too gud at it to mature a business...

[Sal @asksaleem]

@udaykotak The real gdp growth was only 2.6%, this is by lowering previous year's base from 86T inr to 80T inr -- as per the previous finance secretary.
https://t.co/RYOoM7b38t

[S Raju @rajusvin]

@Pooja_Tripathii SC Garg, Former Finance & EA Secy (2017-2019) says in NDTV that GDP is 2.6%, not 7.8%

[Sal @asksaleem]

@nikhilkamathcio I have even a better example: from 2.apr.2026 to 21.apr.26 nifty has given a 11% returns, in just 20 days!
Kuch bhi?

[Sal @asksaleem]

@niki_poojary @AdityaTodmal Nifty being humble tdy due to hft and prop traders are off the radar. Once they figure out the strategy it could be different. Most importantly, CAS window need to be sorted out, the biggest risk.

[Stockmock.in (Backtesting, Simulator & Builder) @stockmock_in]

CAS & Options — The Problem

🔴 What is happening?

CAS is creating a new problem for option traders.

Right now, options are starting to price CAS risk higher than overnight risk.

Think about that.

A 20-minute auction is becoming a bigger risk for an option seller than holding the position overnight.

That doesn’t feel normal.

⚠️ Why is CAS more complicated in India?

We cannot simply say that CAS works in other countries, so it should work the same way in India.

Our market is different.

1. Cash market vs F&O market

Our derivatives market is huge compared to the depth available in individual stocks in the cash market.

But ultimately, prices discovered in the cash market can impact settlement of a much larger derivatives market.

This creates an imbalance.

A relatively small amount of activity during CAS can potentially have a much bigger impact on F&O positions.

2. Short sellers are missing

In India, you cannot normally carry a short position in stocks overnight.

So an important group of sellers is effectively missing from the auction.

If buyers and sellers don't have the same freedom to participate, we should at least ask:

Is CAS really giving us the fairest possible closing price?

🔴 The bigger question — Why 3%?

This is the part I find difficult to understand.

Why has the CAS price band been kept at 3%?

Why 3% and not 1%?

Or 0.5%?

What data supports 3%?

Do these stocks normally move anywhere close to 3% in the last 20 minutes?

If the answer is no, then option traders are being forced to price a risk which normally doesn't even exist.

And that is exactly what we are seeing in option premiums.

As 3:15 approaches, sellers have to protect themselves against what could happen during CAS.

Naturally, premiums stay high and liquidity can reduce.

💡 Possible Solutions

I don't think CAS needs to be removed.

The problem can possibly be solved with much smaller changes.

Solution 1: Expire 0DTE options at 3:15 PM

Take the reference price at 3:15 PM and use that for settlement of expiring options.

After that, CAS can continue normally for the cash market.

This keeps CAS and 0DTE settlement separate.

OR

Solution 2: Reduce the CAS band from 3% to around 0.3%

If historical movement during these 20 minutes is small, why allow a 3% band?

A 0.3% band would make the maximum possible CAS movement much more predictable.

For option sellers, this makes a huge difference.

Once they know that CAS cannot suddenly create a very large settlement move, they will be more comfortable providing liquidity even after 3:15 PM.

And if sellers stay in the market, option premiums should also start becoming normal.

The Point

CAS itself may not be the problem.

The way CAS interacts with our derivatives market is the problem.

If a 20-minute auction carries more risk premium than holding a position overnight, we should seriously look at the design again.

CAS can stay.

But it should be designed around how the Indian market actually works.

The goal should always be simple:

Fair price discovery, without creating unnecessary risk for the derivatives market.

#CAS #Options #IndianMarkets #SEBI #Derivatives

@IRITA_india

[Sal @asksaleem]

@padhucfp Home is an emotional asset, you don't put a emi/price tag on it, it's everyone's dream to own one. Home value may depreciate over time but UDS value appreciates. Not too irrational...

[Sal @asksaleem]

@psankar @JeffDean @Sanjay_Ghemawat Wtf, such a long list of accomp... Tears in my eyes...😂

[Sal @asksaleem]

@Ronak_Unadkat No wonder CAS stands for Casino 😀

[Tanmay Kurtkoti | Quant Trading @TanmayKurtkoti]

“ India’s Biggest Casino ”

India’s biggest casino now opens at 3:15 PM.

Not in Goa. Not in Sikkim.

At the NSE closing auction where a 0DTE option trader can watch the

“settlement value”

jump 150 points while the underlying cash basket is not trading continuously.

A thread 👇🏻

Today at 3:15 PM, Nifty was at 24,463.45.

Its official close: 24,614.90.

That is a 151.45-point auction jump on weekly expiry day.

Yesterday, Day 1 of CAS, the closing adjustment was roughly 200 points.

Fair and robust price discovery, apparently.

Here is the new game:

3:15–3:20: cash orders blocked; reference price calculated.
3:20–3:25: market + limit orders collected.
3:25–random close: only limit orders; market orders locked.
3:28–3:30: random close.
F&O keeps trading till 3:40.

On my terminal, the ATM straddle was near ₹100 at 3:15.

In five minutes it went ₹100 → ₹120 → ₹85 → ₹100, even though the cash index was effectively frozen.

At 3:20, the indicative auction value began moving and 0DTE derivatives had to chase it.

The market then priced possible closes around 24,500, 24,520, 24,545, 24,587 and 24,602.

By roughly 3:28–3:29, it stabilised near 24,615.

The official Nifty close was 24,614.90.

Great opportunity provided you enjoy betting on a moving, non-binding auction indication.

Let us call this what it was.

Not normal cash-futures arbitrage.

Before random close, the indicative price can change as orders enter, change or disappear. The cash basket cannot be continuously traded against it.

You are trading settlement jump risk not a locked arbitrage.

On expiry, this is far more dangerous.

The final Nifty close determines option settlement.

So a thin closing auction in heavyweight stocks can transfer large P&L across the expiring options book while traders cannot continuously hedge the underlying basket.

Today’s CAS turnover was reportedly ₹1,542.4 crore on NSE versus only ₹9.4 crore on BSE.

That is 99.4% of auction activity concentrated on NSE.

The two exchanges run separate auctions and can discover different closing prices.

What could possibly go wrong?

The absurdity:

The “actual” Nifty remains based on the last continuous cash prices.

The “indicative close” is based on tentative auction prices.

But expiring options trade on expectations of the second number.

One index. Two displayed realities. Ten minutes to settlement.

NSE says CAS promotes transparency and robust price discovery.

Yet its own framework allows:

• separate NSE/BSE closes
• market orders counted in equilibrium
• market orders locked after 3:25
• no MOC/LOC order type
• a random closing time

On weekly expiry. Brilliant.

Closing auctions are not the problem. Major markets use them.

The mistake is coupling a new, thin cash auction to 0DTE settlement while derivatives remain live and the underlying basket cannot be continuously hedged.

That turns price discovery into a lottery.

SEBI and NSE should urgently:

Pause CAS-based weekly-expiry settlement.
Publish real-time index and stock imbalances to everyone.
Add deviation collars and auction extensions.
Align cash finalisation with derivatives.

Until then: 3:15 PM = casino time 😞

@NSEIndia @BSEIndia @SEBI_India
Do like & share if you want to stop this casino

Comment with your thoughts

[Sal @asksaleem]

@Ronak_Unadkat Even as of today morning, my portfolios are moving positive whilst options are not moving anywhere. There appear to be clear disconnect bw stocks and options, not just during CAS.

[✎𝒜 πundhati🌵🍉🇵🇸 @Polytikles]

NO ADULTERATION,
STRAIGHT FROM THE ❤️

There are some sensible ppl who have kept this Protest Alive & Meaningful.

This 5 minutes video will change your life, the way you think, your perspective towards Young India ,

"When I woke up in my hut this morning and checked my phone, it felt as though this govt had resorted to complete authoritarianism." as he spoke Honesty n Sincerity reflected on his face."

"In a democratic System, Not Arrogance but Dialogue must be the way, whose doors open on both the Sides, like UPA did with Anna, Indira ji did with Sonam's Father & Britishers did with Mahatma."

"There is a word in the Constitutional Oath "Garima (Self-respect), One's Dignity, Dignity, A person's dignity should not be compromised Sir." he was filled with Anguish.

"What were they asking for, 200 yards of flat in Lutyens Delhi ? An MP seat or a Ministry in Modi's Cabinet..? They're just asking for accountability, asking to Fix the crumbling education system, with responsibility." his voice trembles as he spoke.

-----------------------------------
I was completely shattered while writing this, listening to him tears flow from my eyes as I write this with a heavy heart.
-----------------------------------

"In a democracy, holding a dissenting view is not a crime; it is a fundamental right granted to us by the Indian Constitution."

स्वप्न झरे फूल-से,
मीत चुभे शूल-से,
लुट गये सिंगार सभी बाग़ के बबूल से,
और हम खड़े-खड़े बहार देखते रहे।
कारवाँ गुज़र गया, गुबार देखते रहे!

नींद भी खुली न थी कि हाय धूप ढल गई,
पाँव जब तलक उठे कि ज़िन्दगी फिसल गई,
पात-पात झर गये कि शाख़-शाख़ जल गई,
चाह तो निकल सकी न, पर उमर निकल गई,
— नीरज

If this student's story fails to touch you, fails to shake you to your very core, then something is missing within you; something inside you has died: your humanity, your conscience.

[Sal @asksaleem]

@abidsensibull Dark humour...

[Sal @asksaleem]

@Ronak_Unadkat Government Procurement Price: Oil Marketing Companies (OMCs) buy ethanol from distilleries for about ₹58 to ₹66 per litre.

[Sal @asksaleem]

@pawansk11 @Suresh_kumar047 30 years of IT is redefining. Labour arbitrage, on which Indian IT was built mostly is no longer the game. Wait and see how it reshapes itself, at best, identify cloud/AI native companies to invest in.

[Sal @asksaleem]

@abidsensibull Raat ka sarcasm thoda jyada hogaya ;-)

[Sal @asksaleem]

@Himansh41759462 @MGMotorIn Same issue with me, better take them to consumer court.

[Sal @asksaleem]

@MGMotorIn NO. You don't deliver on time. I booked windsor pro more than 30 days ago with 50% upfront payment, still there is no sign of delivery date! Lies.

[Sal @asksaleem]

@Polymarket TACO

[Sal @asksaleem]

@vkhosla @AOC 🤦

[Sal @asksaleem]

@Suresh_kumar047 Glad I had a meaningful conversation with you and implemented the system!