Robust Call Option Volumes Signal Investor Optimism
On 7 May 2026, Bajaj Auto’s call options dominated the most active contracts list, with a total of over 40,000 contracts traded across key strike prices ranging from ₹10,400 to ₹11,600. The highest volume was recorded at the ₹10,600 strike, where 12,014 contracts changed hands, generating a turnover of approximately ₹2356.7 lakhs. This strike also boasts the largest open interest of 3,080 contracts, indicating sustained investor interest and potential price support around this level.
Other notable strike prices include ₹10,700 and ₹10,400, with 6,084 and 6,066 contracts traded respectively, and turnovers exceeding ₹1,000 lakhs. The ₹11,600 strike, despite being further out-of-the-money relative to the current underlying value of ₹10,731.5, saw 5,105 contracts traded, suggesting some investors are positioning for a strong upside move in the coming weeks.
Expiry Patterns and Market Implications
All the active call options are set to expire on 26 May 2026, less than three weeks away. This expiry timeline is critical as it coincides with the company’s recent price surge and technical breakout. Bajaj Auto hit a new 52-week high of ₹10,656 on the day, outperforming its sector by 0.52% and registering a 3.62% gain against the sector’s 2.21% and Sensex’s 0.26% returns.
The stock has been on a two-day consecutive gain streak, delivering a 5.64% return in this period. It opened with a gap-up of 2.55%, touching an intraday high 3.27% above the previous close. These price dynamics have likely fuelled the bullish sentiment reflected in the call option activity, as traders anticipate further upward momentum ahead of expiry.
Technical Strength Supports Bullish Outlook
Bajaj Auto’s technical indicators reinforce the positive market stance. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a strong uptrend across multiple timeframes. The automobile two and three-wheelers sector has also gained 2.52%, providing a supportive industry backdrop.
However, investor participation in terms of delivery volume has declined by 42.81% compared to the five-day average, with only 1.29 lakh shares delivered on 6 May. This dip in delivery volume may suggest that short-term traders and option players are driving the current price action rather than long-term holders.
Mojo Score Upgrade Reflects Improved Fundamentals
Adding to the bullish narrative, Bajaj Auto’s MarketsMOJO score has been upgraded from a ‘Buy’ to a ‘Strong Buy’ on 4 May 2026, with a robust score of 80.0. This upgrade reflects improved financial metrics, quality grades, and trend assessments, signalling enhanced confidence from fundamental analysts. The company’s large-cap status with a market capitalisation of ₹2,98,867.04 crores further cements its position as a blue-chip stock favoured by institutional investors.
Investor Takeaway: Strategic Positioning Ahead of Expiry
For investors and traders, the heavy call option activity at strike prices near and above the current market price suggests a consensus expectation of further gains in Bajaj Auto’s shares over the next three weeks. The concentration of open interest at ₹10,600 and ₹10,700 strikes indicates these levels may act as key support zones, while the active trading at ₹11,600 strike points to optimism for a breakout beyond recent highs.
Given the stock’s technical strength, sectoral tailwinds, and fundamental upgrades, market participants may consider this an opportune moment to evaluate bullish strategies, including call buying or bull call spreads, to capitalise on anticipated upward momentum. However, the decline in delivery volumes advises caution, as short-term volatility could persist.
Summary of Key Metrics for Bajaj Auto Ltd. Call Options (Expiry 26 May 2026)
Strike Price | Contracts Traded | Turnover (₹ lakhs) | Open Interest | Underlying Value (₹)
₹10,600 | 12,014 | 2356.7 | 3,080 | 10,731.5
₹10,700 | 6,084 | 1049.9 | 999 | 10,731.5
₹10,400 | 6,066 | 1517.2 | 868 | 10,731.5
₹10,800 | 5,212 | 720.0 | 1,249 | 10,731.5
₹11,600 | 5,105 | 129.2 | 1,382 | 10,731.5
Conclusion
Bajaj Auto Ltd. is currently at the centre of heightened call option activity, reflecting a bullish consensus among traders and investors. The combination of strong price performance, technical momentum, and fundamental upgrades has created a favourable environment for upward price discovery. As the 26 May expiry approaches, market participants will closely monitor open interest shifts and price action to gauge the sustainability of this rally. While the outlook remains positive, prudent risk management is advisable given the potential for short-term volatility in the options market.
