Bajaj Finance Ltd Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Activity Highlights Investor Optimism

On 12 February 2026, Bajaj Finance Ltd (stock code 959222) emerged as the most active stock in call options trading, with the 1000 strike price call options expiring on 24 February 2026 seeing a remarkable 27,993 contracts traded. This translated into a turnover of approximately ₹2,985.45 lakhs, underscoring strong investor interest in bullish positioning ahead of the expiry date. The open interest for these contracts stood at 5,492, indicating sustained commitment from market participants.

The underlying stock price was ₹997.0 at the time, hovering just below the 1000 strike price, suggesting that traders are anticipating a potential breakout above this psychologically significant level within the next two weeks. The concentration of call option activity at this strike price reflects a consensus expectation of upward momentum in the near term.

Price Performance and Technical Indicators Support Positive Outlook

Bajaj Finance Ltd outperformed its NBFC sector peers by 2.32% on the day, registering a 2.82% gain compared to the sector’s 0.53% rise and the Sensex’s decline of 0.43%. The stock has been on a two-day consecutive gain streak, delivering a cumulative return of 3.22% during this period. Intraday, the stock touched a high of ₹1000.5, surpassing the critical 1000 mark briefly, which aligns with the strike price attracting the most call option interest.

From a technical perspective, the stock is trading above its 5-day, 20-day, 50-day, and 200-day moving averages, signalling sustained short- to long-term strength. However, it remains slightly below the 100-day moving average, which could act as a resistance level in the near term. This mixed technical picture suggests cautious optimism among traders, with the potential for further gains if the stock decisively breaks above the 100-day average.

Investor Participation and Liquidity Considerations

Despite the bullish price action, investor participation has shown signs of moderation. Delivery volume on 11 February was 20.5 lakh shares, down sharply by 67.77% compared to the five-day average delivery volume. This decline in delivery volume may indicate that short-term traders and option players are driving the recent price moves rather than sustained buying by long-term investors.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹13.94 crore based on 2% of the five-day average traded value. This liquidity profile ensures that institutional and retail investors can execute large orders without significant market impact, which is crucial for maintaining orderly price discovery amid heightened option market activity.

Mojo Score and Rating Reflect Cautious Stance

Bajaj Finance Ltd currently holds a Mojo Score of 65.0 with a Mojo Grade of Hold, reflecting a tempered outlook despite recent bullish activity. This represents a downgrade from a Buy rating issued on 1 February 2026, signalling that while the stock remains fundamentally strong, certain risk factors or valuation concerns have prompted a more cautious stance. The company’s market capitalisation stands at a substantial ₹6,04,327 crore, categorising it as a large-cap stock with significant institutional interest.

The downgrade may be influenced by the stock’s technical resistance near the 100-day moving average and the recent decline in delivery volumes, which could suggest limited conviction among long-term investors. Nevertheless, the strong call option activity indicates that traders are positioning for a potential upside breakout, creating a dynamic interplay between fundamental caution and technical optimism.

Expiry Patterns and Strike Price Concentration

The expiry date of 24 February 2026 is attracting the bulk of call option activity, with the 1000 strike price dominating volumes. This expiry is less than two weeks away, intensifying the focus on short-term price movements. The high open interest at this strike price suggests that many traders are either hedging existing positions or speculating on a rally beyond ₹1000.

Such concentrated activity often precedes significant price moves, as option writers and buyers adjust their positions in response to evolving market conditions. Should Bajaj Finance Ltd breach the 1000 level decisively, it could trigger a fresh wave of buying, both in the underlying stock and in higher strike call options, further amplifying bullish momentum.

Sector and Market Context

Within the NBFC sector, Bajaj Finance Ltd’s outperformance is notable given the broader market’s subdued tone. The Sensex’s marginal decline of 0.43% contrasts with the stock’s 2.82% gain, highlighting its relative strength. This divergence may be attributed to the company’s robust business fundamentals, diversified loan portfolio, and strong asset quality metrics, which continue to attract investor confidence despite macroeconomic uncertainties.

However, investors should remain vigilant to sector-specific risks such as interest rate fluctuations, regulatory changes, and credit cycle dynamics that could impact NBFC valuations. The current option market activity suggests that traders are factoring in these risks while positioning for potential upside, balancing optimism with prudence.

Investor Takeaway and Outlook

The surge in call option activity for Bajaj Finance Ltd at the 1000 strike price expiring on 24 February 2026 reflects a clear bullish bias among traders anticipating a near-term price breakout. The stock’s recent outperformance relative to its sector and the broader market, combined with supportive technical indicators, lends credence to this optimism.

However, the downgrade in Mojo Grade from Buy to Hold and the decline in delivery volumes suggest that long-term investor conviction may be tempered by valuation concerns and technical resistance. Investors should weigh these factors carefully, considering both the potential for upside momentum and the risks posed by market volatility and sector-specific headwinds.

For those looking to capitalise on the current bullish sentiment, monitoring the stock’s ability to sustain levels above ₹1000 and observing option expiry dynamics will be crucial. The coming weeks will be pivotal in determining whether Bajaj Finance Ltd can convert this option market enthusiasm into sustained price gains.

Company Profile Snapshot

Bajaj Finance Ltd operates within the Non Banking Financial Company (NBFC) sector, offering a diversified range of financial products and services. With a market capitalisation exceeding ₹6 lakh crore, it is one of India’s largest and most influential NBFCs. The company’s strong asset quality, innovative lending practices, and extensive distribution network have underpinned its growth trajectory and investor appeal.

Summary of Key Metrics

• Market Capitalisation: ₹6,04,327 crore (Large Cap)
• Mojo Score: 65.0 (Hold, downgraded from Buy on 1 Feb 2026)
• Most Active Call Option Strike: ₹1000 (Expiry 24 Feb 2026)
• Call Option Contracts Traded: 27,993
• Call Option Turnover: ₹2,985.45 lakhs
• Open Interest: 5,492 contracts
• Underlying Stock Price: ₹997.0
• Day’s High: ₹1000.5
• 1-Day Return: 2.82% (vs Sector 0.53%, Sensex -0.43%)
• Delivery Volume (11 Feb): 20.5 lakh shares (-67.77% vs 5-day avg)
• Liquidity: Supports trade size of ₹13.94 crore

Investors should continue to monitor Bajaj Finance Ltd’s price action and option market trends closely, as these indicators provide valuable insights into market expectations and potential directional moves in this large-cap NBFC stock.

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