Adani Ports Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Trading Highlights

On the derivatives front, Adani Ports recorded 1,288 put option contracts traded at the 1,500 strike price, generating a turnover of approximately ₹16.48 crores. The open interest for these contracts stands at 1,910, indicating a substantial build-up of positions that could influence price dynamics as expiry approaches. The underlying stock price was ₹1,515.10 at the time of this activity, placing the 1,500 strike price close to the current market level and making these puts particularly relevant for traders seeking downside protection or speculative opportunities.

Stock Price and Market Context

Adani Ports is trading near its 52-week high, just 0.31% shy of the peak level of ₹1,523.60. The stock outperformed its sector by 0.3% on the day, touching an intraday high of ₹1,523, which represents a 2.63% gain from the previous close. This performance is notable within the transport infrastructure sector, which itself gained 2.44% during the same period. The stock’s price is currently above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a strong technical position despite the put option interest.

Investor Participation and Liquidity

Investor participation, measured by delivery volume, showed a decline with 7.34 lakh shares delivered on 25 November, down by 29.01% compared to the five-day average delivery volume. Despite this dip, the stock remains sufficiently liquid, with the average traded value supporting trade sizes up to ₹5.2 crores based on 2% of the five-day average traded value. This liquidity is crucial for options traders and institutional investors looking to execute sizeable positions without significant market impact.

Interpreting the Put Option Activity

The concentration of put option contracts at the 1,500 strike price, which is slightly below the current market price, suggests that traders are positioning for potential downside risk or are hedging existing long positions. Put options provide a form of insurance against price declines, and the elevated open interest indicates that a significant number of market participants are either protecting gains or speculating on a correction.

Given the stock’s proximity to its 52-week high and its outperformance relative to the sector and broader Sensex (which returned 0.47% on the same day), the put option interest may reflect cautious sentiment amid recent gains. This dynamic is common in large-cap stocks where investors seek to balance upside potential with risk management strategies.

Expiry Patterns and Market Implications

The expiry date of 30 December 2025 is a key factor in the options market activity. As expiry approaches, open interest levels and strike price concentrations often influence price volatility and trading volumes. The sizeable open interest at the 1,500 strike price could lead to price support or resistance around this level, depending on how traders adjust or close their positions.

Market participants should monitor changes in open interest and volume in the coming weeks to gauge shifts in sentiment. A decline in put open interest might indicate reduced bearishness or unwinding of hedges, while further accumulation could signal sustained caution.

Company and Sector Overview

Adani Ports & Special Economic Zone operates within the transport infrastructure industry and is classified as a large-cap stock with a market capitalisation of ₹3,20,532 crores. The company plays a pivotal role in India’s logistics and port operations, a sector that has seen steady government focus and investment. The stock’s recent performance relative to its sector highlights its importance and resilience amid broader market movements.

Balancing Technical Strength with Hedging Activity

While Adani Ports demonstrates technical strength by trading above all major moving averages and nearing its yearly high, the active put option interest reveals a nuanced market stance. Investors appear to be balancing optimism about the stock’s prospects with prudent risk management through options strategies.

This duality is not uncommon in large-cap stocks that have experienced recent rallies. The presence of put options at strike prices close to the current market level often serves as a barometer for investor caution, especially in sectors sensitive to economic cycles and regulatory developments.

Outlook for Investors and Traders

For investors, the current scenario suggests maintaining awareness of both the stock’s strong price momentum and the underlying hedging activity. Traders focusing on options markets should watch for shifts in open interest and volume patterns as the December expiry approaches, which could provide clues on potential price movements and volatility.

Given the stock’s liquidity and active participation in both cash and derivatives markets, Adani Ports remains a key stock to monitor within the transport infrastructure sector. The interplay between bullish price action and bearish option positioning underscores the complexity of market sentiment at this juncture.

Conclusion

Adani Ports & Special Economic Zone’s recent put option activity highlights a significant level of hedging or bearish positioning ahead of the 30 December 2025 expiry. Despite trading near its 52-week high and outperforming its sector, the stock’s options market reveals cautious sentiment among investors. This dynamic, combined with strong liquidity and technical indicators, makes Adani Ports a noteworthy case study in balancing growth prospects with risk management in India’s transport infrastructure space.

Market participants should continue to analyse both price action and derivatives data to better understand evolving investor perspectives and potential price trajectories in the weeks ahead.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →