Put Option Activity Concentrated Near Current Market Levels
Data from the derivatives segment indicates that Bharti Airtel’s put options with strike prices of ₹2,080 and ₹2,100 have attracted the most attention. Specifically, the ₹2,100 strike put options recorded 2,110 contracts traded, generating a turnover of approximately ₹256.38 lakhs, while the ₹2,080 strike saw 1,916 contracts traded with a turnover of ₹158.18 lakhs. Open interest figures further underscore this activity, with 2,523 contracts outstanding at the ₹2,100 strike and 1,748 at ₹2,080.
These strike prices are closely aligned with the stock’s current underlying value of ₹2,096, suggesting that market participants are positioning themselves around the prevailing price level. The concentration of put options near the current market price often signals a protective stance, as investors seek downside protection or speculate on potential price corrections.
Expiry Patterns and Market Implications
The expiry date of 30 December 2025 is the immediate focal point for these options trades. As the expiry approaches, the volume and open interest in these put options may influence the stock’s price dynamics, particularly if there is a shift in market sentiment. The substantial open interest at these strikes could lead to increased volatility as traders adjust or unwind positions.
Bharti Airtel’s stock closed at ₹2,096 on 15 December 2025, which is approximately 3.59% below its 52-week high of ₹2,174.50. The stock’s performance on the day was in line with the broader telecom sector, registering a 1.32% return compared to the sector’s 1.01% and the Sensex’s decline of 0.37%. This relative strength, combined with the options activity, paints a nuanced picture of investor expectations.
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Technical Indicators and Trading Volumes
Bharti Airtel’s price action reveals that the stock is trading above its 5-day, 50-day, 100-day, and 200-day moving averages, though it remains below the 20-day moving average. This mixed technical picture may contribute to the hedging activity seen in the options market, as traders balance short-term caution with longer-term strength.
Investor participation, as measured by delivery volume, has shown a decline with 22.97 lakh shares delivered on 15 December, down by 15.89% compared to the five-day average. Despite this, liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹15.73 crores based on 2% of the five-day average traded value. This liquidity facilitates active options trading and allows for efficient position adjustments.
Market Capitalisation and Sector Context
Bharti Airtel is a large-cap company with a market capitalisation of approximately ₹11,81,448 crores, operating within the Telecom - Services sector. The sector’s performance on the day was positive, with a 1.01% return, contrasting with the broader Sensex’s decline. This sectoral resilience may influence investor strategies, including the use of put options for hedging or speculative purposes.
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Investor Sentiment and Hedging Strategies
The prominence of put options trading near the current market price suggests a degree of caution among investors. Put options serve as a tool for hedging against potential downside risk or as a speculative bet on price declines. The sizeable open interest at the ₹2,100 and ₹2,080 strikes indicates that market participants are actively managing risk ahead of the December expiry.
Given Bharti Airtel’s proximity to its 52-week high, the put option activity may reflect a protective stance against a possible pullback or increased volatility in the near term. This is consistent with the observed decline in delivery volumes, which could signal reduced conviction among buyers at current levels.
Outlook Ahead of Expiry
As the 30 December expiry approaches, monitoring changes in open interest and volume in these put options will be crucial for understanding shifts in market sentiment. Any significant unwinding or accumulation of positions could impact the stock’s price trajectory. Investors and traders should also consider broader market trends and sectoral performance when analysing Bharti Airtel’s options activity.
Overall, the data points to a market environment where participants are balancing optimism about the telecom sector’s resilience with prudent risk management through options strategies.
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