Bajaj Finance Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity and Market Positioning

On 27 November 2025, Bajaj Finance recorded 985 contracts traded in put options at the ₹1,000 strike price, generating a turnover of approximately ₹89.31 lakhs. The open interest for these contracts stands at 3,199, indicating a substantial build-up of positions in the put segment. The underlying stock price at the time was ₹1,029.70, placing the ₹1,000 strike slightly out-of-the-money, which is a common level for protective puts or speculative bearish bets.

This concentration of put options suggests that market participants are either seeking downside protection or positioning for a potential correction in the stock price ahead of the December expiry. The sizeable open interest also points to a sustained interest in these contracts, which could influence price dynamics as expiry nears.

Stock Performance and Technical Indicators

Bajaj Finance has outperformed its sector by 1.06% on the day, with a one-day return of 1.49% compared to the sector’s 0.55% and the Sensex’s 0.11%. The stock has been on a two-day consecutive gain streak, delivering a cumulative return of 3.93% during this period. This recent upward momentum contrasts with the increased put option activity, highlighting a complex market sentiment where bullish price action coexists with protective or speculative bearish positioning.

From a technical standpoint, the stock’s price is trading above its 5-day, 100-day, and 200-day moving averages, signalling underlying strength over short and long-term horizons. However, it remains below the 20-day and 50-day moving averages, which may indicate some near-term resistance or consolidation. This mixed technical picture could be contributing to the heightened put option interest as investors weigh potential risks.

Investor Participation and Liquidity

Investor participation in Bajaj Finance has shown signs of rising engagement. Delivery volume on 26 November reached 66.81 lakhs, representing a 35.77% increase compared to the five-day average delivery volume. This uptick in delivery volume suggests that more investors are holding shares rather than trading intraday, which can be interpreted as a sign of confidence or accumulation.

Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹15.53 crores based on 2% of the five-day average traded value. Such liquidity levels facilitate efficient execution of large trades and options strategies, making Bajaj Finance an attractive instrument for both institutional and retail investors.

Context within the NBFC Sector and Market Capitalisation

Bajaj Finance operates within the Non Banking Financial Company (NBFC) sector, a segment that has witnessed varied investor sentiment amid evolving regulatory and economic conditions. With a market capitalisation of approximately ₹6,38,302.19 crores, Bajaj Finance is classified as a large-cap stock, commanding significant attention from market participants.

The stock’s recent performance, including its relative outperformance against the sector and Sensex, underscores its prominence within the NBFC space. However, the active put option interest may reflect cautious positioning as investors navigate sector-specific risks and broader market uncertainties.

Expiry Patterns and Implications for December 2025

The put options in focus are set to expire on 30 December 2025, a date that often sees heightened activity as traders and investors adjust their positions ahead of contract settlement. The clustering of open interest at the ₹1,000 strike price suggests that this level is viewed as a critical threshold by market participants.

Should the stock price approach or breach this strike price, it could trigger significant option-related hedging activity, potentially amplifying price movements. Conversely, if the stock maintains levels above this strike, the put options may expire worthless, benefiting option sellers who have taken on the risk.

Balancing Bullish Momentum with Protective Strategies

The coexistence of recent gains in Bajaj Finance’s share price alongside heavy put option volumes indicates a nuanced market stance. While the stock’s upward trajectory over the past two days reflects positive momentum, the put option interest points to a segment of investors seeking downside protection or anticipating potential volatility.

This duality is common in large-cap stocks where institutional investors employ options to hedge existing positions or express tactical views without outright selling shares. Such strategies can help manage risk in an environment where market conditions remain fluid.

Outlook for Investors and Traders

For investors and traders monitoring Bajaj Finance, the current derivatives activity offers valuable insights into market sentiment and potential price dynamics. The substantial put option interest at the ₹1,000 strike price ahead of the December expiry suggests that risk management remains a priority for many participants.

Market watchers should consider the interplay between the stock’s technical positioning, recent price performance, and options market data when forming their views. The liquidity and delivery volumes further support active participation, making Bajaj Finance a focal point for both equity and derivatives traders in the NBFC sector.

Conclusion

Bajaj Finance’s prominence in put option trading, particularly at the ₹1,000 strike price expiring on 30 December 2025, highlights a significant hedging or bearish stance among investors despite recent price gains. The stock’s technical indicators and rising investor participation add layers of complexity to its market narrative.

As expiry approaches, the evolving options landscape will likely influence Bajaj Finance’s price movements, offering opportunities and risks for market participants. Close monitoring of open interest trends, delivery volumes, and price action will be essential for those engaged with this large-cap NBFC stock.

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