'Will focus on option buying in 2024,' says finfluencer PR Sundar; 'stick to long-term investments,' advise netizens

Finfluencer PR Sundar, who has been banned from dealing with Indian securities for a year, said on Saturday that he will focus on option buying when he re-enters the markets of 2024 general elections. 

Sundar, who is usually an option seller said that the trading band "made lot of changes" in his life. "One key reason why I became Option seller, huge capital, huge capital can not be deployed in Option buying. I am exploring various other ways to deploy my huge capital like investments in equity and other businesses," he said on X platform (formerly Twitter).

"This one year trading ban has made lot of changes in my life. When I re-enter the markets, after Parliament elections, I will focus more on Option buying than Option selling. One key reason why I became Option seller, huge capital, huge capital can not be deployed in Option buying. I am exploring various other ways to deploy my huge capital like investments in equity and other businesses. However, I will continue to be Option sellers with a different perspective," he said. 

Sundar also said on 'X' that he will offer courses for both option buyers and sellers. "I am a businessman. Do not take sides," he said. 

One netizen accused Sundar of making lot of money out of option selling courses and now wants to do the same with option buying. 

Another netizen said intraday option buying has been favourable these days rather than going for option selling. 

"Selling options isn't favourable these days, the risks gets as worse as they say risk is unlimited (definitely for naked ones) but buying these days have really showing good gains for intraday & if you're in the right direction then even in carry positions," said the X user. 

Some netizens said option trading is basically gambling and that real wealth can be created only by long-term investments. 

SEBI has been saying for long that derivative is a risky instrument for retail investors, especially those who are not fully aware of the risks of the instrument.

According to a SEBI analysis, the number of individual traders in the equity F&O segment jumped 500 per cent in FY22, when compared to the number in FY19 - up from 7.1 lakh in FY19 to 45.2 lakh in FY22.

More importantly, nine out of 10 individual traders in the equity F&O segment incurred net losses during both the years -- FY19 and FY22 even as 98% of individual traders in the equity F&O segment traded in options during FY22.

In a first-of-kind action against finfluencers (financial influencers), capital market regulator SEBI on May 25 issued an order to penalise the renowned Youtuber and options traderfrom trading for a year over alleged violation of investment advisors norms. 

Securities and Exchange Board of India, in its May 25 order, had named Sundar, his company Mansun Consulting and co-promoter of the company Mangayarkarasi Sundar, and asked them to pay a settlement amount; and to disgorge more than Rs 6 crore, which includes profit earned from the advisory services and interest on the profit. 

PR Sundar and Mangayarkarasi Sundar are promoters of Mansun, incorporated on June 30, 2017, with 50 per cent shareholding each. 

SEBI observed that PR Sundar was running the website www.prsundar.blogspot.com through which he was offering various packages for providing advisory services, SEBI said. The fees collected in lieu of the services were received via a payment gateway linked to the bank account of Mansun Consultancy Pvt Ltd, the regulator had said.