Angel One Sees Heavy Put Option Activity Amid Bearish Market Signals

Put Option Activity Highlights

Data from the derivatives segment reveals that Angel One Ltd’s put options have attracted substantial trading volumes, particularly for contracts expiring on 30 December 2025. The strike prices with the most active put contracts range from ₹2,400 to ₹2,700, closely surrounding the current underlying stock price of ₹2,668.5. This clustering of activity near the money indicates a strategic focus on hedging or bearish bets within a relatively narrow price band.

Specifically, the 2,700 strike price saw the highest number of contracts traded at 2,927, generating a turnover of approximately ₹971.54 lakhs and an open interest of 1,305 contracts. This is closely followed by the 2,600 strike with 2,731 contracts traded and a turnover of ₹554.12 lakhs, alongside an open interest of 1,148. The 2,500 strike also recorded significant activity with 2,942 contracts traded and an open interest of 1,253, while the 2,400 strike had 2,099 contracts traded and an open interest of 1,141.

The 2,650 strike price, slightly above the current market price, registered 1,781 contracts traded with a turnover of ₹502.06 lakhs and an open interest of 545. This distribution of open interest and turnover across multiple strike prices suggests a layered approach by market participants, possibly reflecting a range of risk management strategies or speculative positioning.

Stock Price Performance and Market Context

Angel One’s stock price has shown a downward movement recently, with a day’s return of -5.16%, underperforming its sector by -4.52% and the Sensex by -0.33%. The stock touched an intraday low of ₹2,661.1, representing a decline of 5.44% on the day. Notably, the weighted average price of traded shares leaned towards the lower end of the day’s range, indicating selling pressure near the lows.

Technical indicators reveal that the stock price currently trades above its 50-day, 100-day, and 200-day moving averages but remains below the 5-day and 20-day averages. This mixed technical picture suggests short-term weakness amid longer-term support levels. Additionally, investor participation has risen, with delivery volumes on 2 December reaching 3.99 lakh shares, a 145.35% increase compared to the five-day average delivery volume. This heightened activity may reflect increased interest in the stock amid recent price volatility.

Liquidity metrics indicate that Angel One is sufficiently liquid for trades up to ₹4.07 crore based on 2% of the five-day average traded value, supporting active market participation by institutional and retail investors alike.

Implications of Put Option Concentration

The concentration of put option activity at strike prices near the current market value suggests that investors are positioning for potential downside or seeking protection against further declines. The open interest figures, particularly at the 2,700 and 2,600 strikes, imply that a sizeable number of contracts remain outstanding, which could influence price dynamics as expiry approaches.

Such positioning is often interpreted as a hedge against adverse price movements or as a speculative bet on a bearish trend. Given the stock’s recent underperformance relative to its sector and benchmark indices, the options market activity aligns with a cautious or defensive stance among traders.

Expiry patterns also play a role in shaping option market behaviour. The 30 December 2025 expiry date is the focal point for these put contracts, with market participants likely adjusting their positions as the date nears. This expiry timeline provides a window for investors to reassess risk and market outlooks in the capital markets sector.

Sector and Market Capitalisation Context

Angel One operates within the capital markets industry, classified as a small-cap stock with a market capitalisation of approximately ₹25,471 crore. The capital markets sector has experienced mixed trends recently, with some stocks showing resilience while others face pressure amid broader economic and regulatory developments.

Angel One’s recent market behaviour, including its option market positioning and price action, may reflect sector-specific challenges or investor sentiment shifts. The stock’s relative underperformance compared to its sector and the Sensex highlights the nuanced dynamics at play.

Investors and market watchers should consider these factors alongside the option market data to gauge potential future movements and risk exposures.

Investor Considerations and Outlook

For investors, the heavy put option activity in Angel One signals a need for careful risk assessment. The clustering of put contracts near the current price suggests that market participants are either hedging existing positions or speculating on a downward move. This environment calls for close monitoring of price trends, volume patterns, and open interest changes as the December expiry approaches.

Moreover, the stock’s technical indicators and recent delivery volume trends provide additional context for evaluating market sentiment. While longer-term moving averages offer some support, the short-term weakness and increased investor participation may indicate heightened volatility ahead.

Market participants should also be mindful of broader sectoral and macroeconomic factors that could influence Angel One’s performance in the coming weeks.

Summary

Angel One Ltd’s options market activity ahead of the 30 December 2025 expiry reveals significant put option trading concentrated around strike prices close to the current stock price. This pattern, combined with recent price declines and increased delivery volumes, points to a cautious or bearish stance among investors in the capital markets sector. The stock’s liquidity and technical positioning add further layers to the market narrative, underscoring the importance of vigilant monitoring as expiry approaches.

Investors should weigh these factors carefully when considering exposure to Angel One, balancing the potential risks indicated by option market positioning with the stock’s longer-term fundamentals and sector outlook.

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