Websites providing ‘stock-options tips’: By all looks, another huge scam in the making
A number of websites have cropped up, trying to lure investors with dubious claims of more than 100% returns—why are the regulators silent?
Speak Asia is not the only company luring thousands of people with dubious claims and the promise of extraordinary returns. The legitimate options & futures trading market of the National Stock Exchange (NSE) is a happy hunting ground for shoddy online tip-sheets, luring the gullible.
The Internet is flooded with websites claiming accurate tips, as high as 99% in trading in Nifty Futures & Options, etc. These portals are luring people to subscribe to their various plans—which is nothing but virtual gambling.
Most of the trades are usually in the Nifty and individual stock options where average trading volumes on the NSE are about Rs1,00,000 crore per day. Of these, index options account for 65% of total volume.
A Google search throws up dozens of websites promising huge returns through their tip-sheets, but market regulators seem to be unaware of these portals.
The modus operandi of all these tip-sheet portals is similar. They claim 99% accuracy, provide various stock options plans on (weekly or yearly) subscription. On an average, two-three 'tips' are delivered via mobile text messages. A few punters deliver tips using online chat rooms.
- For instance, a website CallOptionPutOption provides such trading tips ranging from stock options to Nifty Futures tips and Nifty Options tips. It claims 200%-500% profit per month on its stock options tips. For this 'plan', capital of Rs15,000 is required and tips are provided with one target price and one stop-loss. Subscription to this scheme ranges from Rs2,500 (monthly) to Rs20,000 (yearly basis). For another plan, 'Nifty Future Tips', it claims that up to 85%-90% tips are "profitable".
- Similarly, DayGains claims more than 92% accuracy with profit of Rs2.07 lakh per month in equity and profit of Rs3.70 lakh per month in commodities. It suggests intraday trading 'tips' and provides complete follow-ups for both stop-loss and targets till a position is closed.
- Another website, SuperNSetips, claims to teach the "best day trading techniques" along with "money management". It actually provides tips to generate the desired volume in a market at a single point and time. It says, "We give Full LIVE Yahoo support during market hours to our Paid clients. We can give you 99% accurate live market calls according to your plans." (Reproduced verbatim).
- A portal called CapitalVia provides stock tips, stock futures tips, Nifty tips, 'Premium Stock Tips', option calls & put tips, claiming 85%-90% accuracy. It also claims that it will provide complete support via Web messaging and also provides a mobile number. One such plan is called 'Viva Pick' where the portal suggests one call for Rs6,000 promising 4%-5% returns on every call within one-three trading sessions!
- Here's another one: Indian-Share-Tips. It claims "guaranteed returns" on 'Jackpot' tips, day trading tips, etc., for subscription ranging from Rs2,000 to Rs32,000, on a weekly to monthly basis, depending on the plan. Interestingly, it has a "Recovery of Money Plan", which is a 30-day money-back guarantee. The site claims, "We even provide a 30 days money-back guarantee for the said plan. Moreover, within this duration of 6 months; one will graduate to higher level of trading as a trader as this plan is personally monitored by Analyst himself and one will be able to make money with each executed trade." (Again reproduced verbatim, not corrected for grammar).
- BestStockAnalysis claims to charge only on positive calls and not on negative calls. It charges Rs10,000 monthly as advance fee, deducting Rs500 for every positive call. On each segment it provides one-two 'ideas', claiming an average of more than 80% success ratio in its suggested calls.
- DailyStockTips claims accuracy of above 87% and even promises that one can earn Rs50,000 in a single day from intraday share tips! Here's what the website says, "Even in this Volatile Market, We have given excellent share tips to our clients. Let the Market be Bearish or Bullish, Our Clients have always benefited from our Share tips. We invite you to become our Member and get benefit from our Share tips."
- Optiontips says, "Get one Nifty Options intraday sure shot tips services (with) 98-99% accuracy." Its 'Nifty Option Golden Jackpot' claims to have maintained 93% (and above) accuracy all the time with low investment and huge 20%-50% returns on a daily basis. On this plan, it also guarantees minimum 400%-500% monthly returns. Its monthly subscription is Rs5,000 per month. For its options 'sure-shot' plans, it claims 98% accuracy with minimum 900-1,200% monthly returns!
- NiftyfutureNiftyoption claims to offer positional and intraday tips on futures, options, 'Jackpot Calls', etc., with 80%-90% success rate in futures trading. It says, "Profits in Index Futures and Options services comes to 30-70 points on consistent basis irrespective of market." It claims to offer minimum 25% return per month on Nifty Futures and Options.
There are many more websites making such claims—Here are a few:
Obviously, if generating such high market returns was so easy, investors all across India-and around the globe-will be flocking to Mumbai. The blatant dubiousness of these claims is obvious even with a cursory glance at these sites. But a few might just bite the bait. The moot point is, while a Google search can throw up so many sites, why are the regulators silent?