Angel One Ltd Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Activity Highlights

On 18 February 2026, Angel One Ltd (stock code: 1003425) emerged as the most active stock in put options trading, with the 2600 strike price put contracts dominating volumes. A total of 2,681 contracts were traded, generating a turnover of approximately ₹27.49 crores. Open interest stood at 1,232 contracts, indicating sustained interest in downside protection or speculative bearish bets.

The underlying stock price was ₹2,621 at the time, placing the 2600 strike put slightly out-of-the-money. This suggests that traders are positioning for a potential correction or increased volatility in the near term, as the expiry date approaches.

Stock Performance and Technical Context

Despite the surge in put activity, Angel One Ltd’s stock price has shown resilience. On 17 February, the stock outperformed its sector by 1.59% and reversed a five-day losing streak with a 2.07% gain on 18 February. The intraday high touched ₹2,654.8, a 3.29% increase, signalling short-term bullish momentum.

Technically, the stock trades above its 20-day, 50-day, 100-day, and 200-day moving averages, though it remains below the 5-day moving average, indicating some near-term consolidation. Delivery volumes rose by 6.58% to 2.43 lakh shares on 17 February, reflecting rising investor participation and liquidity, with a trade size capacity of ₹4.81 crores based on recent averages.

Mojo Score and Market Sentiment

Angel One Ltd holds a Mojo Score of 44.0, categorised as a Sell, following a downgrade from Hold on 27 January 2026. The market cap is ₹23,424 crores, placing it in the small-cap segment within the capital markets industry. The downgrade reflects concerns over valuation and near-term headwinds despite the stock’s recent price strength.

This bearish sentiment is consistent with the increased put option activity, as investors seek to hedge existing long positions or speculate on a potential pullback amid sector volatility and broader market uncertainties.

Expiry Patterns and Investor Behaviour

The 24 February 2026 expiry is attracting significant attention, with put options at the 2600 strike price leading volumes. This strike is close to the current market price, making it a critical level for traders to watch. The open interest of 1,232 contracts suggests that many investors are either hedging against a downside move or positioning for a volatility spike.

Such activity often precedes market inflection points, as option traders adjust their portfolios ahead of expiry. The combination of rising delivery volumes and put option interest indicates a cautious stance among market participants, balancing optimism from recent gains with prudence against potential reversals.

Sector and Market Comparison

Angel One Ltd’s 1-day return of 2.07% on 18 February outpaced the capital markets sector’s 0.54% gain and the Sensex’s marginal 0.03% rise. This relative strength contrasts with the bearish undertone in options, highlighting a divergence between spot market optimism and derivatives market caution.

Investors should consider this dichotomy carefully, as it may signal an impending correction or a period of increased volatility. The stock’s liquidity and active trading volumes support efficient price discovery, but the downgrade to a Sell rating by MarketsMOJO underscores the need for vigilance.

Implications for Investors

The surge in put option volumes at a strike price near the current market level suggests that investors are increasingly wary of downside risk in Angel One Ltd. This could be driven by broader market volatility, sector-specific challenges, or valuation concerns highlighted by the recent downgrade.

For long-term investors, the stock’s technical strength and rising delivery volumes offer some reassurance, but the bearish options positioning warrants caution. Active traders and hedgers may find opportunities in the options market to manage risk or capitalise on expected volatility.

Given the stock’s liquidity and active participation, options strategies such as protective puts or spreads could be effective tools to navigate the current environment. Monitoring open interest changes and expiry dynamics will be crucial in the coming days.

Outlook and Conclusion

Angel One Ltd’s recent price gains and sector outperformance contrast with the elevated put option activity, reflecting a market at a crossroads. The downgrade to a Sell rating by MarketsMOJO and the moderate Mojo Score of 44.0 reinforce the cautious stance.

Investors should weigh the technical indicators, delivery volume trends, and options market signals carefully. While the stock remains fundamentally sound within the capital markets sector, the near-term outlook is clouded by increased hedging and speculative bearish bets ahead of the 24 February expiry.

Prudent portfolio management and active monitoring of market developments will be essential to navigate this nuanced scenario effectively.

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