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Option traders sound alarm bells over sizzling Indian stock market rally

Proprietary traders have boosted net short positions in index calls, while trimming their net shorts in index-based puts, according to data compiled by Bloomberg. Prop traders — who take on market exposure for themselves rather than their clients — account for the largest single share of the total derivatives volume in India, so monitoring their positioning comes with extra significance.

Detailed text transcripts for TV channel - MSNBC - 20100508:14:24:00

1,000 times. good morning. good morning to you, alex. do you know what happened? is there a clear answer out there, because i have been looking for one and i don t find one. we don t know where it started. we don t know the initial cause of the people in the markets to react. however, we do have a sense of process. the way it sort of played out, which is that a large part of trading on stock exchanges these days is done by computers, they re done by so-called al go rhythmic traders or prop traders, a bunch of different sort of players. what happened was, when the market started to go haywire, we re still not sure example exactly why. obviously, this was in the midst of concern about greece. okay, that was up on the trading floor, apparently. you saw the video of what s going on, the riots. police clashing with people in the streets. at the same time, worries about european banks, would they stop letourneau leblonding to each other, some of the same worries about the lehman br

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