Axis Bank Sees Robust Call Option Activity Ahead of December Expiry

Concentrated Call Option Trading at Key Strike Prices

Data from recent trading sessions highlights three strike prices for Axis Bank’s call options that have attracted the highest volumes and turnover. The 1240 strike price leads with 5,980 contracts traded, generating a turnover of ₹482.14 lakhs and an open interest of 4,546 contracts. Close behind is the 1230 strike, with 5,026 contracts traded and a turnover of ₹560.40 lakhs, alongside an open interest of 2,977 contracts. The 1250 strike price also shows substantial activity, with 4,441 contracts traded, ₹249.25 lakhs turnover, and an open interest of 4,473 contracts.

These strike prices cluster tightly around the underlying stock value of ₹1,230.30, indicating that traders are focusing on near-the-money options as the expiry approaches. The open interest figures suggest that positions are being held rather than closed out, which may reflect a strategic stance on the stock’s near-term price movement.

Expiry Patterns and Market Implications

The 30 December 2025 expiry date is the focal point for this surge in call option activity. The concentration of contracts at strike prices slightly above the current market price suggests a degree of bullish sentiment, with investors potentially anticipating a price rise beyond these levels before the end of the year. This pattern is consistent with traders seeking leveraged exposure to upside moves while managing risk through defined strike prices.

Open interest data further supports this interpretation, as the sizeable holdings at these strikes imply that market participants are positioning for a scenario where the stock price may surpass these levels, thereby making these call options profitable at expiry.

Stock Performance and Market Context

Axis Bank’s stock price has shown resilience, outperforming its sector by 1.35% on the day of analysis. The stock recorded a 1-day return of 0.99%, compared to the sector’s negative 0.34% and the Sensex’s modest 0.21% gain. This relative strength follows a brief two-day decline, signalling a potential trend reversal.

Technical indicators reveal that the stock price is trading above its 100-day and 200-day moving averages, which often serve as long-term support levels. However, it remains below the shorter-term 5-day, 20-day, and 50-day moving averages, suggesting some near-term consolidation or resistance. This mixed technical picture may be contributing to the cautious but optimistic positioning seen in the options market.

Rising Investor Participation and Liquidity

Investor engagement in Axis Bank shares has intensified, as evidenced by a delivery volume of 67.47 lakh shares on 16 December 2025. This figure represents a 323% increase compared to the five-day average delivery volume, indicating heightened interest from long-term holders or institutional investors. Such a surge in delivery volume often reflects confidence in the stock’s fundamentals or anticipation of favourable developments.

Liquidity metrics also support active trading, with the stock’s average traded value over five days sufficient to accommodate trade sizes of approximately ₹10.72 crore without significant market impact. This level of liquidity is crucial for options traders who require efficient execution and minimal slippage.

Market Capitalisation and Industry Positioning

Axis Bank is classified as a large-cap entity with a market capitalisation of ₹3,78,609 crore, placing it among the leading private sector banks in India. Its industry standing and scale contribute to its attractiveness for options trading, as larger companies typically offer more liquid and diverse derivatives markets.

The bank operates within the private sector banking industry, a segment that has witnessed dynamic shifts and competitive pressures. The current market assessment reflects a nuanced view of Axis Bank’s prospects, balancing its established position with evolving sectoral challenges.

Implications for Investors and Traders

The concentrated call option activity around strike prices 1230, 1240, and 1250 ahead of the December expiry suggests that market participants are positioning for a potential upward move in Axis Bank’s share price. The open interest levels indicate that these are not merely speculative trades but positions held with an expectation of price realisation.

Investors should consider the broader market context, including the stock’s recent outperformance relative to its sector and the Sensex, as well as the technical signals from moving averages and delivery volumes. While the short-term technicals show some resistance, the longer-term averages and rising investor participation provide a foundation for cautious optimism.

Given the liquidity and market capitalisation of Axis Bank, the options market offers a viable avenue for investors seeking leveraged exposure or hedging strategies. The expiry date of 30 December 2025 provides a defined timeframe for these positions, allowing for strategic planning around year-end market developments.

Conclusion

Axis Bank’s options market activity ahead of the December expiry highlights a focused interest in call options near the current stock price, reflecting a measured bullish stance among traders. The stock’s performance metrics, delivery volumes, and liquidity underpin this positioning, suggesting that investors are weighing the bank’s fundamentals and market dynamics carefully.

As the expiry date approaches, monitoring changes in open interest and strike price concentrations will be essential to gauge evolving market sentiment. For those engaged in derivatives trading or equity investment, Axis Bank remains a significant player within the private sector banking space, warranting close attention to its price action and options market developments.

Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →