Nitish Narang

✨ #Backtest #PriceDrop ✨ We’ve always believed optimisation should benefit you—and today, it finally does! 🚀 After fine-tuning our backtesting systems, we’re excited to pass the savings straight to you. 🎉 Enjoy a 25% Price Drop on all Backtesting Plans, effective right now! Smarter. Faster. Cheaper. 🔥 ➡️ stockmock.in/#!/subscription

[MCX] Crude Mini and Natural Gas Mini also added 🔥 #HappyDiwali #Stockmock To sum up we now have 8 mcx instruments: - Crude, NG from Jan 2023 - Gold, Silver, Gold Mini, Silver Mini from Jan 2024 - CrudeMini, NGMini from Jul 2024 Remember - Slippages can be the big factor at times in mcx so don't get in fully awe of the results. Diwali Offer Continues... stockmock.in/#!/subscription

MCX - Natural gas also available on Stockmock now in backtesting and in Simulator 💪 stockmock.in

Last month was pretty interesting, with some really good updates on StockMock 🚀 Quick roundup 🧵 1. 📈 Stocks are here in Simulator Stock F&O is now on StockMock. Go beyond the indices and test your strategies on individual stocks too. 2. 🛢️ Crude Oil (MCX) in Backtest & Simulator Backtest crude intraday (09:00–23:30), data from Jan 2023 3. 🧭 Smart Journey in Backtest Leg journeys got smarter: • Wait before the next leg enters • Repeat a branch ×N • A separate "SL on Profit" branch Build adjustment flows the way you actually trade them. 4.💰 Results after brokerage & taxes in Backtest Set brokerage per order or per lot (+18% GST), and turn on Taxes & Charges for STT/CTT, exchange charges, SEBI fees and stamp duty, all at today's rates. You now see Gross Profit, Brokerage and Taxes separately. 5. 🎯 Multiple of 100/500 strikes in backtest 6. 🛡️ Associated hedge at "Sold Strike ± points" Your hedge follows your sold leg, including on re-entries and journeys. 7. ⚡ Plus faster, steadier backtests and lots of smaller fixes. More coming next month 👀 Tell me what you want next 👇 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