Bharti Airtel Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Concentrated Near Current Market Levels

Data from the derivatives market reveals that Bharti Airtel's put options expiring on 30 December 2025 have attracted substantial volumes. The strike prices with the most active put contracts include ₹2,100, ₹2,140, ₹2,120, ₹2,060, and ₹2,000. Among these, the ₹2,100 strike stands out with 4,993 contracts traded, generating a turnover of approximately ₹689.2 lakhs and an open interest of 2,439 contracts. This level is just below the stock's underlying value of ₹2,119.8, indicating a focus on near-the-money puts.

Other notable strikes include ₹2,120 with 1,532 contracts traded and a turnover of ₹271.7 lakhs, and ₹2,140 with 1,083 contracts traded and a turnover of ₹248.1 lakhs. The ₹2,000 strike, further out-of-the-money, has seen 1,951 contracts traded with an open interest of 1,396, suggesting some interest in deeper protection or speculative bearish bets.

Market Context and Price Movements

Bharti Airtel's stock price closed at ₹2,119.8, approximately 3.08% away from its 52-week high of ₹2,174.5. The stock underperformed its sector by 0.58% on the day, registering a decline of 2.15%. It opened with a gap down of 2.66% and touched an intraday low of ₹2,097.5, down 2.97% from the previous close. Despite these short-term declines, the stock remains above its 20-day, 50-day, 100-day, and 200-day moving averages, though it trades below the 5-day moving average, signalling some near-term pressure.

Investor participation has shown signs of moderation, with delivery volume on 25 November at 41.55 lakh shares, down 27.19% compared to the five-day average. Liquidity remains adequate, with the stock supporting a trade size of approximately ₹33.94 crore based on 2% of the five-day average traded value.

Implications of Heavy Put Option Trading

The concentration of put option activity near the current market price of Bharti Airtel suggests a cautious stance among traders and investors. Put options serve as a tool for hedging downside risk or expressing bearish views. The elevated open interest and turnover at strikes close to ₹2,100 indicate that market participants may be seeking protection against potential declines or positioning for a correction in the stock price before the December expiry.

Moreover, the presence of significant contracts at the ₹2,000 strike price, which is roughly 5.7% below the current market level, points to some appetite for deeper downside protection or speculative bets on a more pronounced price drop. This pattern aligns with the recent price weakness and the stock's underperformance relative to its sector.

Expiry Patterns and Market Sentiment

The December 2025 expiry date is a key focal point for options traders, as it marks the end of the current quarterly cycle. The clustering of put option volumes around this expiry suggests that investors are actively managing their risk exposures ahead of this date. The open interest figures, particularly the 2,439 contracts at ₹2,100 and 1,396 contracts at ₹2,000, highlight the scale of positions that could influence price dynamics as expiry approaches.

Given Bharti Airtel's status as a large-cap telecom services company with a market capitalisation of approximately ₹12.32 lakh crore, these option market movements are significant. They reflect a nuanced market assessment amid ongoing sector challenges and broader economic factors affecting telecom operators.

Technical and Sectoral Considerations

From a technical perspective, Bharti Airtel's position above its medium- and long-term moving averages suggests underlying strength, despite short-term volatility. The recent dip below the 5-day moving average may indicate a temporary pullback or consolidation phase. The stock's proximity to its 52-week high also underscores resilience in a competitive telecom sector.

Sectorally, Bharti Airtel's performance trails the broader Sensex, which recorded a positive return of 0.47% on the day, while the telecom sector itself declined by 1.85%. This relative underperformance may be contributing to the cautious positioning seen in the options market, as investors weigh sector-specific risks such as regulatory developments, competitive pressures, and capital expenditure demands.

Investor Takeaways

For investors and traders, the heavy put option activity in Bharti Airtel ahead of the December expiry offers insights into market sentiment and risk management practices. The data suggests that while the stock maintains a strong market capitalisation and remains near its yearly highs, there is a discernible hedging interest or bearish positioning that could influence price movements in the near term.

Monitoring open interest changes and strike price concentrations can provide valuable clues about potential support and resistance levels. The ₹2,100 strike, with its substantial open interest, may act as a psychological barrier, while the ₹2,000 strike could represent a key downside level to watch.

Investors should also consider broader market conditions and sector trends when interpreting these option market signals, as external factors can quickly alter the risk landscape for telecom stocks like Bharti Airtel.

Conclusion

Bharti Airtel's derivatives market activity ahead of the 30 December 2025 expiry highlights a significant focus on put options, reflecting a blend of hedging and cautious positioning. The concentration of contracts near the current stock price and at lower strikes points to a market preparing for potential volatility or downside risk. As the expiry date approaches, these option positions may play a pivotal role in shaping price action and investor sentiment in one of India's largest telecom companies.

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