F&O trading: Sensex, Bank Nifty options deliver 6x returns. ₹1 lakh soars to 6.72 lakh in 10 days | Stock Market News

Traders in index options have witnessed phenomenal returns over the past few sessions, with Sensex and Bank Nifty call options delivering multi-fold gains amid strong momentum in the broader market.

The Sensex 77,000 call option (CE) surged 367% in just eight days, while the Bank Nifty 48,500 CE skyrocketed by 611% in nine trading sessions, creating lucrative opportunities for derivatives traders.

Sensex 77,000 Call: A 4.5x Return in 8 Days

On March 19, the Sensex 77,000 CE was trading at ₹181.10. By March 26, it had surged to ₹846.05 per unit, generating a 367% gain.

With a lot size of 20, one lot would have cost ₹3,622 ( ₹181.10 × 20). By March 26, its value had risen to ₹16,921 ( ₹846.05 × 20), translating to a profit of ₹13,299 per lot (267% return).

For an investment of ₹1 lakh, a trader could have bought 27 lots, which would have grown to ₹4,56,867, yielding a profit of ₹3,56,867— nearly 4.5 times the initial investment.

Bank Nifty 48,500 Call: 6.7x Returns in 10 Days

On March 15, the Bank Nifty 48,500 CE was priced at ₹450. By March 27, it soared to ₹3,200, recording a 611% surge, noted Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi.

With a lot size of 30, a single lot of Bank Nifty options would have cost ₹13,500 ( ₹450 × 30). Today, its value stands at ₹96,000 ( ₹3,200 × 30), generating a profit of ₹82,500 per lot.

A trader investing ₹1 lakh on March 15 could have purchased 7 lots, which would now be worth ₹6,72,000, delivering a staggering ₹5,72,000 profit – 6.7 times the original investment.

What’s Driving the Rally?

Strong momentum in Sensex and Bank Nifty has fueled aggressive buying in call options. Sharp swings in index prices have pushed option premiums higher. Moreover, increased participation from FIIs and DIIs has added to bullish sentiment, analysts said.

The benchmark Sensex and jumped more than 3,500 points from its March 17 closing level. The recent price action highlights the power of options trading, where well-timed bets can yield massive short-term gains.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.