Bharat Electronics Ltd Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Activity Signals Bullish Sentiment

Data from the derivatives market reveals that Bharat Electronics Ltd has emerged as one of the most actively traded stocks in call options for the upcoming expiry. The strike prices of 450, 460, and 470 have attracted significant attention, with the 450 strike leading in both contracts traded and open interest. Specifically, 4,880 contracts were traded at the 450 strike, generating a turnover of ₹246.17 lakhs and an open interest of 9,474 contracts. The 460 strike saw 4,568 contracts traded with a turnover of ₹90.48 lakhs and an open interest of 7,842, while the 470 strike recorded 5,158 contracts traded, turnover of ₹47.78 lakhs, and open interest of 4,180 contracts.

This concentration of activity at strikes above the current underlying price of ₹442.95 suggests that traders are positioning for a potential rally in BEL shares over the coming week. The 450 strike, in particular, is just 1.6% above the current market price, indicating a near-term bullish bias among option buyers.

Stock Performance and Technical Indicators

Despite a slight dip of 0.93% on the day, Bharat Electronics remains resilient, trading comfortably above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The stock closed at ₹442.95, just 4.02% shy of its 52-week high of ₹461.65, underscoring its strong technical positioning. However, the recent price action shows a mild reversal after three consecutive days of gains, which may be prompting traders to hedge or speculate through options.

Investor participation, measured by delivery volume, has seen a marginal decline of 7.47% against the five-day average, with 57.74 lakh shares delivered on 18 February 2026. Liquidity remains robust, supporting trade sizes up to ₹13.49 crore based on 2% of the five-day average traded value, ensuring smooth execution for large institutional orders.

Fundamental Outlook and Market Positioning

Bharat Electronics Ltd, with a market capitalisation of ₹3,27,222 crore, is a heavyweight in the Aerospace & Defense sector. The company’s recent upgrade from Hold to Buy by MarketsMOJO on 17 November 2025, accompanied by a strong Mojo Score of 78.0, reflects improved fundamentals and positive outlook. The Market Cap Grade of 1 further confirms its status as a large-cap stock with solid market standing.

Sector-wise, BEL has marginally underperformed its Aerospace & Defense peers today, with a 1-day return of -1.03% compared to the sector’s -0.92%. The broader Sensex was relatively stable, declining only 0.13%, indicating that BEL’s movement is more stock-specific than market-driven.

Expiry Patterns and Option Market Dynamics

The February 24 expiry is shaping up as a critical juncture for BEL options traders. The high open interest at the 450 and 460 strikes indicates these levels are focal points for price action expectations. The 470 strike, while further out-of-the-money, has also attracted substantial volume, suggesting some traders are betting on a more pronounced upside move.

Turnover figures highlight the 450 strike as the most liquid, with ₹246.17 lakhs traded, nearly three times the turnover at the 460 strike. This disparity may reflect a preference for nearer-the-money strikes, balancing risk and reward. The open interest data also suggests that many positions remain open, potentially leading to increased volatility as expiry approaches.

Implications for Investors and Traders

For investors, the bullish call option activity signals growing confidence in BEL’s near-term prospects. The stock’s technical strength, combined with a recent upgrade and solid fundamentals, supports a positive outlook. However, the slight underperformance today and the recent price pullback caution against complacency.

Traders might consider the elevated open interest and volume at key strikes as indicators of potential price support and resistance zones. The 450 strike, in particular, could act as a psychological barrier, with a break above potentially triggering further upside momentum. Conversely, failure to breach this level may result in consolidation or a correction.

Options strategies such as bull call spreads or protective puts could be employed to capitalise on the expected directional move while managing risk. The liquidity in BEL options ensures that such strategies can be executed efficiently.

Outlook and Conclusion

Bharat Electronics Ltd’s active call option market ahead of the 24 February expiry reflects a bullish consensus among traders and investors. The stock’s proximity to its 52-week high, combined with strong technical indicators and a recent upgrade to a Buy rating, underpin this optimism. While short-term volatility cannot be ruled out given the recent price pullback, the overall trend remains positive.

Investors should monitor the evolving open interest and volume patterns closely, as these will provide clues on market expectations and potential price movements. The company’s large-cap status and leadership in the Aerospace & Defense sector further enhance its appeal as a strategic holding in portfolios seeking exposure to defence-related growth themes.

In summary, Bharat Electronics Ltd presents a compelling case for bullish positioning through options, supported by solid fundamentals and technical strength. Market participants are advised to remain vigilant and consider risk management strategies as expiry approaches.

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