Amber Enterprises Sees Heavy Put Option Activity Amid Bullish Price Momentum

Robust Price Performance Contrasts with Elevated Put Option Interest

Amber Enterprises (NSE: AMBER) has been on a remarkable upward trajectory, outperforming its sector by 4.64% on 10 February 2026 and extending a nine-day consecutive gain streak that has delivered a 32.74% return over this period. The stock opened with a gap-up of 3.56% and touched an intraday high of ₹7,444, marking a 5.62% rise on the day. Trading well above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, Amber’s technical indicators signal strong bullish momentum.

Investor participation has also intensified, with delivery volumes rising to 1.87 lakh shares on 9 February, a 3.38% increase compared to the five-day average. Liquidity remains ample, supporting trade sizes up to ₹6.1 crore comfortably.

Put Option Activity Highlights Bearish Positioning and Hedging

Contrary to the bullish price action, Amber Enterprises has emerged as the most active stock in put options trading on the derivatives front. The 24 February 2026 expiry has seen 2,639 contracts traded at the ₹7,000 strike price, generating a turnover of ₹374.32 lakh. Open interest stands at 1,040 contracts, signalling sustained interest in downside protection or speculative bearish bets.

With the underlying stock price at ₹7,395.50, the ₹7,000 strike puts are positioned slightly out-of-the-money, suggesting that traders are either hedging against a potential near-term correction or speculating on a pullback from current highs. This activity is notable given Amber’s recent strong gains and positive technical setup.

Market Cap and Fundamental Assessment

Amber Enterprises is classified as a small-cap stock with a market capitalisation of ₹25,964 crore. The company operates within the Electronics & Appliances industry, a sector that has shown mixed performance amid evolving consumer demand and supply chain dynamics. Amber’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 2 January 2026. This upgrade reflects some improvement in fundamentals or market sentiment, though the overall score remains cautious.

Interpreting the Put Option Surge: Hedging or Bearish Sentiment?

The surge in put option volumes at the ₹7,000 strike price, just below the current market price, suggests a nuanced market outlook. Institutional investors and traders may be employing these options as a hedge against the recent sharp rally, protecting gains in case of a short-term reversal. Alternatively, some market participants could be positioning for a correction, anticipating profit-taking or sector-specific headwinds.

Given Amber’s strong technicals and rising delivery volumes, the put activity may be more reflective of prudent risk management rather than outright bearish conviction. However, the open interest accumulation indicates that this is a significant theme to monitor as expiry approaches.

Expiry Patterns and Potential Impact on Price Action

The 24 February 2026 expiry is critical, with the ₹7,000 strike put options representing a key support level in the derivatives market. Should the stock price remain above this level, the likelihood of these puts expiring worthless increases, potentially reducing downside pressure. Conversely, a dip below ₹7,000 could trigger increased put option exercise and heightened volatility.

Traders should also watch for shifts in open interest across other strike prices and expiry dates to gauge evolving market sentiment and hedging strategies.

Comparative Sector and Benchmark Performance

Amber Enterprises’ 4.74% one-day return on 10 February contrasts sharply with the Electronics & Appliances sector’s decline of 0.37% and the Sensex’s modest gain of 0.32%. This outperformance underscores Amber’s relative strength and investor preference amid broader market fluctuations.

However, the company’s modest market cap grade of 3 and a Mojo Score below 40 indicate that fundamental challenges or valuation concerns remain, warranting cautious optimism.

Investor Takeaways and Strategic Considerations

For investors, Amber Enterprises presents a complex picture. The stock’s strong price momentum and technical indicators suggest continued upside potential in the near term. However, the elevated put option activity signals that market participants are mindful of potential volatility and downside risks.

Those holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels to safeguard gains. Conversely, traders looking to capitalise on volatility could explore put option selling strategies, provided they are comfortable with the associated risks.

Given Amber’s current Mojo Grade of Sell and a modest market cap grade, investors should weigh fundamental factors carefully alongside technical signals before committing fresh capital.

Outlook Ahead of Expiry

As the 24 February expiry approaches, monitoring changes in open interest and volume across strike prices will be crucial to understanding evolving market sentiment. Should the stock maintain its upward momentum, the bearish put positions may unwind, reducing volatility. However, any signs of profit booking or sector headwinds could trigger a correction, validating the put option interest.

Overall, Amber Enterprises remains a stock to watch closely, balancing strong momentum with cautious hedging activity in the options market.

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