Apollo Hospitals Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Volumes Reflect Investor Confidence

Data from the options market reveals that Apollo Hospitals (underlying ticker: APOLLOHOSP) has been the focus of intense call option activity, particularly for contracts expiring on 24 February 2026. The most actively traded call options cluster around strike prices of ₹7,500, ₹7,600, ₹7,700, and ₹8,000, with the underlying stock currently valued at ₹7,600.5.

The ₹7,500 and ₹7,600 strike calls have seen the highest number of contracts traded, with 12,572 and 12,574 contracts respectively. These strikes also command substantial turnover, amounting to ₹2,665.89 lakhs and ₹2,209.41 lakhs, indicating strong investor interest in positions close to the current market price. The ₹7,700 strike call follows closely with 8,022 contracts traded and a turnover exceeding ₹1,014 lakhs, while the ₹8,000 strike call recorded 7,994 contracts with turnover of ₹309.87 lakhs.

Open interest figures further corroborate this bullish positioning. The ₹7,600 strike call holds the highest open interest at 2,396 contracts, suggesting that traders are maintaining or building positions at this level. The ₹7,500 and ₹8,000 strikes have open interest of 1,640 and 2,167 contracts respectively, while the ₹7,700 strike call stands at 1,130 contracts.

Stock Performance Supports Positive Outlook

Apollo Hospitals has outperformed its sector peers and broader benchmarks in recent sessions. The stock has gained 5.19% on the day, surpassing the Hospital & Healthcare Services sector’s 3.08% rise and the Sensex’s marginal decline of 0.01%. Over the past seven consecutive trading days, Apollo Hospitals has delivered a cumulative return of 9.45%, reflecting sustained buying interest.

Notably, the stock opened with a gap up of 2.58% and touched an intraday high of ₹7,640, representing a 5.83% increase from the previous close. It is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong technical uptrend. This momentum is supported by a market capitalisation of ₹1,03,813 crores, classifying it as a large-cap stock with significant institutional participation.

However, delivery volumes have declined by 43.86% compared to the five-day average, indicating some reduction in investor participation despite the price rally. Liquidity remains adequate, with the stock capable of handling trade sizes up to ₹5.36 crores based on 2% of the five-day average traded value.

Mojo Score and Rating Update

Apollo Hospitals currently holds a Mojo Score of 55.0, reflecting a moderate outlook with a Mojo Grade of Hold. This represents a downgrade from a previous Buy rating assigned on 9 January 2026. The downgrade suggests a cautious stance by analysts despite the recent price strength, possibly due to valuation concerns or sector headwinds. The company’s Market Cap Grade remains at 1, indicating its status as a large-cap stock with stable market capitalisation metrics.

Investors should weigh the technical bullishness evident in the options market against the tempered fundamental rating. The hospital sector continues to face challenges such as regulatory scrutiny and cost pressures, which may temper upside potential despite positive near-term momentum.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity around the ₹7,500 to ₹8,000 strike prices for the 24 February expiry suggests that traders are positioning for a potential breakout above current levels. The underlying stock’s proximity to these strikes indicates that market participants expect the price to either hold steady or advance moderately in the coming weeks.

Such positioning is typical ahead of expiry dates when traders seek to capitalise on short-term directional moves or hedge existing exposures. The elevated turnover and open interest at these strikes imply that Apollo Hospitals is a preferred vehicle for bullish option strategies, including call buying and spreads.

Sector Context and Comparative Performance

Within the Hospital & Healthcare Services sector, Apollo Hospitals stands out for its recent outperformance. The sector has gained 3.08% on the day, buoyed by positive earnings reports and improving demand for healthcare services. Apollo’s 5.19% gain surpasses the sector average by 2.11 percentage points, highlighting its relative strength.

However, the broader market remains cautious, with the Sensex essentially flat. This divergence underscores the selective nature of investor interest, favouring quality large caps with strong fundamentals and technical momentum.

Investor Takeaway and Outlook

The surge in call option volumes and open interest at near-the-money strikes for Apollo Hospitals signals a clear bullish bias among traders anticipating further upside. The stock’s strong technical positioning, coupled with sector outperformance, supports this view.

Nonetheless, the recent downgrade to a Hold rating and the decline in delivery volumes suggest that investors should remain vigilant. Valuation levels and sector-specific risks may cap gains in the near term. Investors with a medium-term horizon may consider monitoring option market activity as a barometer of evolving sentiment.

Overall, Apollo Hospitals remains a key large-cap stock in the hospital sector, attracting significant attention from both equity and derivatives market participants. The interplay of technical momentum and fundamental caution will likely shape its trajectory in the weeks ahead.

Summary of Key Metrics:

• Underlying stock price: ₹7,600.5
• Most active call strikes: ₹7,500, ₹7,600, ₹7,700, ₹8,000
• Highest contracts traded: 12,574 (₹7,600 strike)
• Turnover at ₹7,500 strike: ₹2,665.89 lakhs
• Open interest peak: 2,396 contracts (₹7,600 strike)
• Stock 1-day return: 5.19%
• Sector 1-day return: 3.08%
• Mojo Score: 55.0 (Hold)
• Market cap: ₹1,03,813 crores (Large Cap)

Investors should continue to track option market dynamics alongside fundamental developments to gauge the evolving risk-reward profile of Apollo Hospitals Enterprise Ltd.

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