Put Option Activity Highlights
On the expiry date of 24 Feb 2026, Axis Bank’s put options at strike prices ₹1,370 and ₹1,380 witnessed substantial trading volumes. The ₹1,380 strike saw 4,089 contracts traded, generating a turnover of ₹64.40 lakhs, while the ₹1,370 strike recorded 3,276 contracts with a turnover of ₹22.52 lakhs. Open interest remains robust at 1,515 and 1,519 contracts respectively, indicating sustained investor interest in downside protection or speculative bearish bets.
The underlying stock closed at ₹1,396, just 1.66% shy of its 52-week high of ₹1,418.3, reflecting strong price momentum. However, the heavy put option volumes suggest that market participants are hedging against potential near-term volatility or a pullback, especially given the proximity to all major moving averages and recent gains.
Stock Performance and Market Context
Axis Bank has outperformed its sector by 1.21% on the day, with a 1-day return of 1.96% compared to the private sector banking sector’s 0.76% and the Sensex’s 0.64%. The stock has recorded gains for two consecutive days, delivering a 2.85% return over this period. Intraday, it touched a high of ₹1,398, a 2.17% increase, and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a strong technical setup.
Despite this, delivery volumes have declined by 21.41% against the 5-day average, with 25.16 lakh shares delivered on 20 Feb 2026. This falling investor participation could be a cautionary sign, prompting some traders to seek downside protection through put options.
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Investor Sentiment and Hedging Implications
The surge in put option activity at strike prices close to the current market level suggests a nuanced investor stance. While the stock’s fundamentals and technicals remain solid—reflected in its MarketsMOJO Mojo Score of 67.0 and an upgraded Mojo Grade from Sell to Hold on 15 Oct 2025—market participants appear to be positioning for potential downside risks in the short term.
Put options are commonly used either as a hedge against existing long positions or as speculative bets on a decline. The sizeable open interest and turnover at ₹1,370 and ₹1,380 strikes indicate that traders are actively managing risk around these price points ahead of expiry. This could be driven by broader macroeconomic uncertainties or sector-specific concerns impacting private sector banks.
Axis Bank’s Market Capitalisation and Sector Positioning
With a market capitalisation of ₹4,24,699 crore, Axis Bank is a large-cap leader in the private sector banking industry. Its current Mojo Grade of Hold reflects a cautious optimism, balancing strong price momentum against potential headwinds. The stock’s ability to maintain levels above key moving averages supports a constructive medium-term outlook, but the active put option interest signals that investors are not discounting near-term volatility.
Liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹12.3 crore based on 2% of the 5-day average traded value. This ensures that both institutional and retail investors can execute sizeable trades without significant market impact.
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Expiry Patterns and Strategic Outlook
The expiry on 24 Feb 2026 is a critical juncture for Axis Bank’s options market. The concentration of put contracts near the ₹1,370-₹1,380 strikes, just below the current price, suggests a protective floor for longs or a speculative zone for bears. Should the stock maintain its upward trajectory, these puts may expire worthless, benefiting option sellers. Conversely, a correction towards these strikes could trigger significant option payoffs, cushioning losses for hedged investors.
Given the stock’s recent upgrade from Sell to Hold and its Mojo Score improvement, the market appears to be in a phase of consolidation with cautious optimism. Investors should monitor open interest changes and volume trends in the coming sessions to gauge shifts in sentiment.
Conclusion: Balancing Optimism with Prudence
Axis Bank’s strong technical performance and upgraded fundamental rating provide a positive backdrop for investors. However, the heavy put option activity near current price levels highlights a degree of caution among market participants. This duality reflects a prudent approach to risk management amid evolving market conditions.
For investors, understanding the interplay between price action and options market dynamics is crucial. The current scenario suggests that while the bank remains a core holding within the private sector banking space, tactical hedging or selective profit-taking may be warranted ahead of the near-term expiry.
Key Metrics at a Glance:
- Current Price: ₹1,396
- 52-Week High: ₹1,418.3 (1.66% away)
- Mojo Score: 67.0 (Hold, upgraded from Sell on 15 Oct 2025)
- Market Cap: ₹4,24,699 crore (Large Cap)
- Put Option Strike Prices: ₹1,370 & ₹1,380
- Put Contracts Traded: 3,276 (₹1,370), 4,089 (₹1,380)
- Open Interest: 1,519 (₹1,370), 1,515 (₹1,380)
- Turnover: ₹22.52 lakhs (₹1,370), ₹64.40 lakhs (₹1,380)
Investors should continue to track both the stock’s price action and options market developments to make informed decisions in this evolving landscape.
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