Angel One Ltd Sees Heavy Put Option Activity Amid Bearish Sentiment

Surge in Put Option Volumes and Open Interest

On 2 February 2026, Angel One Ltd’s put options emerged as the most actively traded contracts in the capital markets segment. The strike prices of ₹2,300 and ₹2,150 attracted the highest volumes, with 2,185 and 4,125 contracts traded respectively. The turnover for these strikes was nearly identical, at ₹639.06 lakhs for the ₹2,300 strike and ₹638.96 lakhs for the ₹2,150 strike, underscoring strong investor interest in downside protection or speculative bearish bets.

Open interest figures further reinforce this trend, with 1,772 contracts outstanding at the ₹2,300 strike and 1,890 at ₹2,150. Given the underlying stock price of ₹2,329.5, these strikes represent key levels where traders are positioning themselves for potential declines or volatility ahead of the February expiry.

Technical Indicators Point to Bearish Momentum

Angel One’s price action on the day showed a mixed picture. The stock outperformed its sector by 0.48%, registering a modest 0.64% gain compared to the sector’s 0.37% decline and the Sensex’s 0.22% rise. However, the intraday low of ₹2,256.1 marked a 2.46% drop from recent levels, indicating selling pressure during the session.

Notably, the weighted average price of traded volumes clustered near the day’s low, suggesting that sellers dominated the session. The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend and weak technical momentum.

Rising Investor Participation Amid Volatility

Delivery volumes surged dramatically on 1 February, reaching 10.87 lakh shares, a staggering 731.35% increase over the five-day average. This spike in delivery volume indicates heightened investor engagement, possibly reflecting portfolio adjustments or hedging activity in response to recent price swings and market uncertainty.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹6.16 crore based on 2% of the five-day average. This liquidity facilitates active options trading and allows institutional and retail investors to execute sizeable hedging or speculative strategies efficiently.

Mojo Score Downgrade Reflects Caution

Angel One Ltd’s MarketsMOJO score currently stands at 41.0, categorised as a Sell rating. This represents a downgrade from a previous Hold rating issued on 27 January 2026. The downgrade reflects deteriorating fundamentals and technicals, with the company’s market cap grade at 3, indicating a small-cap status with moderate liquidity and volatility considerations.

Investors should note that the downgrade aligns with the increased put option activity, suggesting that market participants are positioning defensively amid concerns over near-term price weakness or sector headwinds.

Expiry Patterns and Investor Strategies

The 24 February 2026 expiry date is a focal point for options traders, with the concentration of put contracts at ₹2,300 and ₹2,150 strikes indicating key support levels under scrutiny. The substantial open interest at these strikes suggests that traders are either hedging existing long positions or speculating on a potential decline below these thresholds.

Given the underlying price hovering near ₹2,330, the ₹2,300 strike is slightly out-of-the-money, while the ₹2,150 strike is more deeply out-of-the-money, offering higher leverage for bearish bets. The near parity in turnover between these strikes implies a balanced mix of moderate and more aggressive downside positioning.

Sector and Market Context

Angel One operates within the capital markets sector, which has experienced mixed performance recently. While the stock outperformed its sector on the day, the broader capital markets index has faced pressure amid macroeconomic uncertainties and regulatory developments. This environment has likely contributed to the cautious stance reflected in options trading.

Investors should weigh the company’s fundamentals against sector trends and technical signals before making allocation decisions. The small-cap nature of Angel One, with a market capitalisation of approximately ₹21,078 crore, adds an element of volatility that can amplify both risks and rewards.

Investor Takeaway and Outlook

The pronounced put option activity in Angel One Ltd ahead of the February expiry highlights a market expectation of potential downside or increased volatility. While the stock has shown resilience with a slight gain on the day, technical indicators and delivery volume spikes suggest that investors remain cautious.

Traders and portfolio managers should monitor open interest changes and price movements closely, particularly around the ₹2,300 and ₹2,150 strike prices, to gauge evolving market sentiment. The downgrade in Mojo Grade to Sell further emphasises the need for prudence.

For those considering exposure to Angel One, it is advisable to balance positions with appropriate risk management strategies, including the use of options for hedging. Additionally, exploring alternative small-cap opportunities within the capital markets sector, as identified by analytical tools, may offer more favourable risk-reward profiles.

Summary

Angel One Ltd’s options market activity reveals a clear tilt towards bearish positioning, with heavy put option volumes and open interest concentrated at strikes below the current market price. This, combined with technical weakness and a recent downgrade in fundamental ratings, paints a cautious picture for the stock in the near term. Investors should remain vigilant and consider hedging or alternative investments as part of their strategy.

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