Bharti Airtel Sees Heavy Put Option Activity Ahead of February Expiry

Put Option Activity Highlights

On 6 February 2026, Bharti Airtel's put options at the ₹2,000 strike price recorded a remarkable 2,704 contracts traded, generating a turnover of ₹414.09 lakhs. Open interest stands at 2,179 contracts, indicating sustained interest in bearish or protective positions ahead of the February expiry. The underlying stock price was ₹2,008.6, hovering just above the strike price, which suggests that traders are bracing for potential volatility or a pullback in the near term.

Market Context and Stock Performance

Bharti Airtel, a heavyweight in the Telecom - Services sector with a market capitalisation of ₹11,44,526.58 crores, has demonstrated resilience despite the bearish options activity. The stock outperformed its sector by 0.41% on the day, delivering a 0.74% gain compared to the sector’s 0.45% rise and the Sensex’s 0.40% decline. This divergence between price performance and options positioning highlights a nuanced market outlook, where investors may be hedging against unforeseen downside risks while still recognising the stock’s underlying strength.

Technical indicators reveal that Bharti Airtel’s price is trading above its 5-day, 20-day, and 200-day moving averages but remains below the 50-day and 100-day averages. This mixed technical picture suggests short-term bullish momentum tempered by medium-term resistance levels. Additionally, delivery volumes on 5 February surged to 48.95 lakh shares, a 13.49% increase over the five-day average, signalling rising investor participation and liquidity. The stock’s liquidity supports sizeable trades, with an estimated capacity of ₹24.87 crores based on 2% of the five-day average traded value.

Investor Sentiment and Hedging Strategies

The concentration of put option activity at the ₹2,000 strike price, close to the current market price, is indicative of a cautious stance among investors. Put options serve as a hedge against potential declines or as speculative bets on price drops. The sizeable open interest and turnover suggest that market participants are either protecting long positions in Bharti Airtel or speculating on a near-term correction.

Given the telecom sector’s sensitivity to regulatory changes, competitive pressures, and macroeconomic factors such as interest rates and inflation, investors may be seeking downside protection. The recent downgrade in Bharti Airtel’s Mojo Grade from Buy to Hold on 29 December 2025, with a current Mojo Score of 51.0, further reflects tempered optimism. The downgrade was influenced by a market cap grade of 1, signalling that despite the company’s large-cap status, growth prospects or valuation metrics may have moderated.

Expiry Patterns and Market Implications

The 24 February 2026 expiry date is a critical juncture for options traders. The clustering of put contracts at this expiry suggests that investors are positioning for events or announcements that could impact Bharti Airtel’s share price in the short term. This could include quarterly earnings, regulatory updates, or sector-specific developments. The expiry also marks a period when open interest tends to unwind, potentially leading to increased volatility as traders adjust or close positions.

While the stock’s recent outperformance relative to the sector and Sensex is encouraging, the heavy put option activity signals that caution prevails. Investors should monitor price action closely around key technical levels, particularly the ₹2,000 mark, which serves as a psychological and options strike price barrier.

Comparative Analysis and Outlook

Bharti Airtel’s current Mojo Grade of Hold contrasts with its previous Buy rating, reflecting a more cautious outlook from analysts. The telecom sector remains competitive, with pricing pressures and capital expenditure demands weighing on margins. However, Bharti Airtel’s large market capitalisation and strong delivery volumes underscore its continued relevance and liquidity in the market.

Investors should weigh the bearish signals from options activity against the stock’s technical resilience and sector fundamentals. The presence of heavy put option volumes may also attract contrarian investors looking for value opportunities if the stock stabilises above key support levels.

Conclusion

Bharti Airtel Ltd’s prominence in put option trading ahead of the 24 February 2026 expiry highlights a complex market environment where hedging and bearish positioning coexist with underlying stock strength. The ₹2,000 strike price has become a focal point for traders, reflecting uncertainty and the need for risk management. While the stock’s recent outperformance and rising investor participation are positive, the downgrade to a Hold rating and elevated put option interest suggest that investors should remain vigilant and consider diversified strategies in the telecom sector.

As expiry approaches, monitoring open interest changes, price movements, and sector developments will be crucial for informed decision-making. Bharti Airtel’s liquidity and market cap ensure it remains a key bellwether for telecom services, but the current options activity signals that caution and strategic hedging are prudent in the near term.

Unlock special upgrade rates for a limited period. Start Saving Now →