VEDL Options Chain behaving strangely after results… can someone explain this?

F&O Freaks
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Vedanta posted strong Q4 numbers:

  • Consolidated PAT up ~92.3% YoY to ₹6,698 crore

  • Previous year same quarter PAT: ₹3,483 crore

Stock also reacted positively and is up ~4% today, trading around ₹773+.

So naturally I checked the options chain expecting calls to be flying…
But what I saw was weird:

  • 770 Call (ATM) was down / weak despite stock rising

  • 780 Call (next OTM) also got crushed

  • 770 CE premium was massive- showing ₹8 lakh+ per lot value

  • 780 CE was only around ₹57

That pricing gap looked absurd.
Usually on a +4% move after strong results, nearby calls should be benefiting unless something else is happening.
Possible reasons I’m thinking:

  1. IV crush after results – event premium vanished after numbers came out

  2. Very wide bid-ask spread / low liquidity causing misleading LTP prints

  3. Deep intrinsic value distortion on ITM strikes

  4. Old stale trades showing weird prices

  5. Smart money already priced in move before results

What confused me most is:
How can the stock be strongly green, yet ATM/near OTM calls look destroyed?
And how does one strike show lakhs of value while next strike looks almost worthless?

Would love if someone experienced with options microstructure explains what exactly was happening here. This looked bizarre.

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3 Likes
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Nothing weird tbh just options mechanics.

After results, IV crush happens a lot. Event is over so premiums drop even if stock is up.

Also dont trust LTP fully. One strike may show old stale trade, another fresh trade. Makes chain look crazy.

770 CE already had intrinsic value near 773 spot, while 780 CE was still OTM and needed more move fast. Could also be move already priced in before results.

So mostly IV crush + bad prints +low liquidity + priced in move. Pretty common on result days

3

Or maybe it has something to do with the demerger that’s coming!