Bajaj Auto Sees Significant Call Option Activity Ahead of December Expiry

Call Option Activity Highlights

Data from recent trading sessions indicate that Bajaj Auto’s call options expiring on 30 December 2025 have attracted substantial volumes. Specifically, the call option with a strike price of ₹9,100 recorded 2,490 contracts traded, generating a turnover of approximately ₹44.37 crores. The open interest for this strike stands at 1,599 contracts, underscoring sustained interest and potential accumulation ahead of expiry.

The underlying stock price at the time of this activity was ₹9,138.5, positioning the ₹9,100 strike slightly in-the-money. This proximity suggests that traders are anticipating the stock to maintain or surpass this level by expiry, reflecting a cautiously optimistic outlook.

Stock Price and Market Context

Bajaj Auto’s stock price is currently trading close to its 52-week high, approximately 4.25% below the peak of ₹9,490. Over the last two trading days, the stock has recorded a cumulative gain of 0.89%, although it underperformed its sector by 0.65% on the most recent trading day. Despite this, the stock remains above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a generally positive technical backdrop.

Investor participation, measured by delivery volume, has shown a decline with 2.27 lakh shares delivered on 28 November, down by 17.79% compared to the five-day average. This reduction in delivery volume may suggest a cautious stance among long-term holders or a shift in trading dynamics as expiry nears.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹8.97 crores based on 2% of the five-day average traded value. This liquidity profile facilitates active options trading and supports the observed volume in call contracts.

Sector and Market Comparison

Within the automobile sector, Bajaj Auto’s recent one-day return of 0.74% trails the sector’s 1.29% gain but exceeds the Sensex’s 0.32% increase on the same day. This relative performance highlights a mixed market environment where Bajaj Auto is maintaining resilience despite sector-wide momentum.

The company’s market capitalisation stands at ₹2,55,269.38 crores, categorising it firmly as a large-cap stock. This scale supports active institutional participation and contributes to the stock’s liquidity and options market depth.

Expiry Patterns and Investor Positioning

The concentration of call option activity at the ₹9,100 strike price for the 30 December 2025 expiry suggests that market participants are positioning for a scenario where Bajaj Auto’s share price remains stable or advances moderately over the coming month. The open interest level indicates that a significant number of traders are holding these positions, potentially to capitalise on expected price movements or to hedge existing exposures.

Options traders often use call contracts to express bullish views or to protect short positions. The volume and turnover figures for Bajaj Auto’s calls imply a preference for near-the-money strikes, which balance risk and reward effectively in the current market context.

Given the stock’s proximity to its 52-week high and its standing above key moving averages, this options activity aligns with a market assessment that anticipates continued strength or limited downside in the near term.

Technical Indicators and Market Sentiment

Bajaj Auto’s trading above all major moving averages signals a sustained positive trend from a technical perspective. The 5-day through 200-day averages provide a layered support structure, which may encourage further call option interest as traders anticipate price stability or appreciation.

However, the slight underperformance relative to the sector and the dip in delivery volumes suggest that some investors may be adopting a cautious stance, possibly awaiting clearer directional cues or broader market developments.

Overall, the options market activity reflects a nuanced view where bullish sentiment is present but tempered by prudent risk management.

Outlook for Bajaj Auto’s Options Market

As the 30 December expiry approaches, monitoring changes in open interest and volume across various strike prices will be crucial to understanding evolving market expectations. The current focus on the ₹9,100 strike price may shift if the underlying stock price moves significantly or if broader market conditions change.

Investors and traders should also consider the impact of sectoral trends, macroeconomic factors, and company-specific developments on Bajaj Auto’s price trajectory and options market dynamics.

Given the stock’s large-cap status and liquidity profile, Bajaj Auto is likely to remain a key focus for options traders seeking exposure to the automobile sector’s performance in the near term.

Conclusion

Bajaj Auto Ltd. is currently a prominent name in the call options market, with significant activity centred on the ₹9,100 strike price for the December 2025 expiry. The stock’s technical positioning above key moving averages and its proximity to a 52-week high underpin the observed bullish interest. While some caution is evident in delivery volumes and relative sector performance, the options data suggests that market participants are positioning for stability or moderate gains in the coming weeks. Investors should continue to track these metrics alongside broader market developments to gauge potential opportunities and risks.

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