Adani Enterprises Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Trading Highlights

Data from the derivatives market reveals that Adani Enterprises has attracted substantial put option volumes, particularly at the ₹2,200 and ₹2,300 strike prices, both expiring on 30 December 2025. The ₹2,300 strike price put options recorded the highest number of contracts traded at 2,719, with a turnover of approximately ₹636.5 lakhs and an open interest of 2,516 contracts. Meanwhile, the ₹2,200 strike price saw 2,174 contracts traded, generating a turnover of ₹250.6 lakhs and an open interest of 1,462 contracts.

This concentration of activity near the current underlying price suggests that market participants are positioning for potential downside risk or are employing hedging strategies to protect existing holdings. The open interest figures indicate that these positions are not merely speculative but may represent sustained bearish sentiment or risk mitigation ahead of the expiry.

Stock Performance and Market Context

On the trading day preceding the expiry, Adani Enterprises outperformed its sector by 1%, registering a 2.13% gain compared to the sector’s 1.46% and the Sensex’s 0.21%. The stock touched an intraday high of ₹2,307, marking a 2.31% increase. Despite this short-term uptick, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating that the broader trend may still be under pressure.

Investor participation has shown a marked rise, with delivery volumes on 27 November reaching 7.57 lakh shares, an 85.73% increase compared to the five-day average delivery volume. This heightened activity suggests renewed interest or repositioning by investors, possibly in response to recent price movements or broader market developments.

Market Capitalisation and Liquidity

Adani Enterprises is classified as a large-cap stock with a market capitalisation of ₹2,93,781 crore. The stock’s liquidity is sufficient to support sizeable trades, with an average traded value over five days indicating that a trade size of approximately ₹5.84 crore can be executed without significant market impact. This liquidity profile supports active options trading and allows institutional investors to implement complex strategies involving the underlying equity and its derivatives.

Expiry Patterns and Investor Sentiment

The December 2025 expiry date is a focal point for options traders, with the concentration of put contracts at strike prices close to the current market value reflecting a cautious stance. The ₹2,300 strike price, slightly below the underlying value, is particularly noteworthy for its high open interest and turnover, suggesting that investors are either hedging against a potential decline or speculating on a price correction.

Such positioning is common in volatile or uncertain market conditions, where downside protection becomes a priority. The presence of significant open interest at these strikes also implies that these contracts may influence price movements as expiry approaches, with traders potentially adjusting their positions to manage risk or capitalise on expected volatility.

Technical Indicators and Moving Averages

Despite the recent intraday gains, Adani Enterprises remains below key moving averages across multiple timeframes, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical setup often signals that the stock is in a consolidation or correction phase, which may be contributing to the increased put option activity as investors seek to hedge or express bearish views.

The divergence between short-term price gains and longer-term moving averages highlights the complexity of the stock’s current trend, with market participants weighing recent positive momentum against broader downward pressures.

Investor Participation and Delivery Volumes

The surge in delivery volumes to 7.57 lakh shares on 27 November, representing an 85.73% rise over the recent average, indicates a notable increase in investor engagement. This heightened participation could be driven by a variety of factors, including repositioning ahead of the options expiry, reactions to company-specific news, or broader market dynamics affecting diversified sector stocks.

Such volume spikes often precede significant price movements and can be a signal of changing investor sentiment or the unwinding of previous positions.

Implications for Investors and Traders

The pronounced put option activity in Adani Enterprises ahead of the December expiry suggests that market participants are preparing for potential downside or increased volatility. Investors holding the stock may consider this as a signal to review their risk exposure and evaluate hedging strategies to protect their portfolios.

For traders, the liquidity and volume in these put options provide opportunities to implement strategies that capitalise on expected price movements or volatility changes. The concentration of open interest near the current price level also means that price action around these strikes could be significant as expiry approaches, potentially leading to increased market activity.

Sector and Market Comparison

Within the diversified sector, Adani Enterprises’ recent performance has outpaced the sector average by approximately 0.67 percentage points on the day under review. However, the stock’s position below key moving averages contrasts with the broader market’s modest gains, as reflected by the Sensex’s 0.21% increase. This divergence underscores the nuanced market assessment of Adani Enterprises relative to its peers and the overall market environment.

Investors analysing the stock should consider these factors alongside the derivatives market activity to form a comprehensive view of the company’s near-term prospects.

Conclusion

Adani Enterprises is currently a focal point for put option trading, with significant volumes and open interest concentrated at strike prices close to the underlying value. This activity reflects a cautious or bearish stance among investors as the December 2025 expiry approaches. While the stock has shown short-term gains, its position below multiple moving averages and the surge in delivery volumes suggest a complex market environment.

Market participants should closely monitor price action and options market developments in the coming weeks to better understand the evolving sentiment and potential risks associated with Adani Enterprises.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →