How Jane Street Tricked Indian Markets To Make Rs 43,000 Crore In Options Profit | Explained
Wall Street's quantitative trader, Jane Street, made a massive profit of over Rs 43,000 crore trading in the Indian options market. The US trader's strategy came into focus during a court case where it was alleged the firm made over $1 billion in options trading in Indian options.
That set the ball rolling in India and the Indian market regulator Sebi began an investigation into the trading patterns of the US delta trader.
As per the evidence provided by the SEBI interim report, the Jane street group had a play book to trade on expiry days, especially Bank Nifty options which earned the firm 40% of the total index options profits. The firm made a profit of Rs 43,289.3 crore between Jan 1, 2023 and March 31, 2025.
What SEBI's Interim Report Reveals
As per the SEBI interim report, an analysis of Jane Street's trading on Jan. 17, 2024 and 14 other Bank Nifty expiry days, showed the following pattern and strategies.
- It would on the morning of expiry aggressively buy large amounts in Bank Nifty underlying stocks/futures.
- It would on the same morning sell Bank Nifty via index options.
- In the afternoon, it would aggressively sell large amounts of Bank Nifty underlying stocks/ futures.
- At peak short position in the Bank Nifty index options segment results in profits from the softer close in Bank Nifty index.
- Jane Street would, in the last two hours, aggressively sell large amounts in stocks/ futures/Bank Nifty futures.
- Short positions in Bank Nifty Options at close.
- Profits would be aided by soft close in Bank Nifty options.
- Aggressively buy in the last two hours – large amounts in Nifty constituent futures (Stock Futures).
- Take Nifty long position via Nifty index options at close.
The Current Reading
According to market regulator SEBI, the US trader made a total of illegal profits across 21 days to the tune of Rs 4,843 crore.
Between January 2023 and March 2025, Jane Street made profits worth Rs 44,358 crore in Options, lost Rs 7,208 crore in stock futures, lost Rs 191 crore in Index Futures, and lost Rs 288 crore in cash. Hence overall profits stood at Rs 36,671 crore.
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