Nithin Kamath says genuine hedging in options market is now harder due to heavy speculation
Analysis of this story by et_markets · 11 Mar 2026, 7:37 PM IST (about 2 months ago)
AI Analysis
The evolution of the derivatives market, especially the rise of weekly options, can alter market dynamics, increasing speculative activity and potentially making markets more prone to sharp moves. This impacts institutional and retail traders alike.
Trading Insight
Negative for risk management in options; consider reducing exposure to complex options strategies or increasing capital buffers.
Quick check: NIFTY neutral, BANKNIFTY neutral.
Key Evidence
- •Nithin Kamath says genuine hedging in options market is now harder.
- •Surge in weekly options trading making hedging difficult.
- •Trading concentrated in ultra-short-term contracts, reducing liquidity in longer-dated options.
- •Risk flag: Increased market volatility
- •Risk flag: Higher hedging costs
People in this Story
N
Sectors:broad_market
Sources and updates
Original source: et_markets
Published: 11 Mar 2026, 7:37 PM IST
Last updated on Anadi News: 11 Mar 2026, 8:36 PM IST
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