Bharti Airtel Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Highlights

On 1 December 2025, Bharti Airtel’s put options with a strike price of ₹2,100 and expiry date of 30 December 2025 recorded a total of 2,250 contracts traded. This volume corresponds to a turnover of approximately ₹30.94 crores, indicating substantial investor engagement in downside protection or speculative bearish bets. The open interest at this strike stands at 2,819 contracts, underscoring sustained interest in this price level as the expiry date nears.

The underlying stock price at the time was ₹2,100.8, placing the ₹2,100 strike almost at-the-money. This proximity suggests that traders are positioning for potential volatility or a price correction in the near term. The put option activity at this strike price is particularly noteworthy given the stock’s recent price behaviour.

Price and Trend Analysis

Bharti Airtel’s stock price is currently 3.41% away from its 52-week high of ₹2,174.5, indicating that it remains near peak levels seen over the past year. The stock has shown a reversal in trend, gaining after four consecutive days of decline. This rebound may have prompted some investors to hedge their positions through put options, anticipating possible renewed weakness.

From a technical perspective, the stock trades above its 50-day, 100-day, and 200-day moving averages, which typically signals a longer-term bullish trend. However, it remains below the 5-day and 20-day moving averages, suggesting short-term consolidation or hesitation among traders. This mixed technical picture could be contributing to the increased put option interest as market participants seek to manage risk.

Liquidity and Market Participation

Liquidity metrics for Bharti Airtel remain robust, with the stock’s traded value supporting trade sizes up to ₹56.92 crores based on 2% of the five-day average traded value. However, investor participation has shown signs of moderation, with delivery volume on 1 December falling by 70.71% compared to the five-day average delivery volume of 32.45 lakh shares. This decline in delivery volume may reflect a cautious stance among investors amid recent price fluctuations.

Sector and Market Context

Bharti Airtel operates within the Telecom - Services sector, which recorded a 1-day return of 0.75% on the same day, slightly outperforming the stock’s 0.53% gain. The broader Sensex index declined by 0.35%, highlighting the relative resilience of the telecom sector and Bharti Airtel in particular. The company’s market capitalisation stands at ₹12,02,232 crores, categorising it as a large-cap stock with significant influence on sectoral and market movements.

Given the stock’s proximity to its yearly highs and the mixed signals from technical indicators, the active put option trading may reflect a hedging strategy by institutional investors or traders seeking to protect gains amid uncertain market conditions. The December expiry date adds a temporal dimension to this positioning, as investors weigh the impact of upcoming events and broader market trends.

Implications of Put Option Interest

Heavy put option activity often signals a degree of caution or bearish sentiment, as investors either speculate on a price decline or seek insurance against downside risk. In Bharti Airtel’s case, the concentration of open interest and traded volume at the ₹2,100 strike price suggests that this level is viewed as a critical support zone. Should the stock price fall below this level, the put options could gain in value, providing a buffer for holders.

Conversely, if the stock maintains or surpasses current levels, the put options may expire worthless, implying that the market’s hedging activity is precautionary rather than anticipatory of a sharp decline. This dynamic is common in large-cap stocks with significant institutional ownership, where risk management is a key consideration.

Outlook and Investor Considerations

Investors analysing Bharti Airtel’s options activity should consider the broader market environment, sectoral trends, and company fundamentals. The telecom sector continues to benefit from steady demand for data and connectivity services, while competitive pressures and regulatory developments remain key factors influencing stock performance.

Bharti Airtel’s current trading levels near its 52-week high reflect underlying strength, but the active put option interest highlights a degree of caution among market participants. This suggests that while confidence in the company’s medium to long-term prospects may persist, short-term volatility or profit-taking cannot be ruled out.

For traders and portfolio managers, the put option data provides valuable insight into market sentiment and potential risk management strategies. Monitoring changes in open interest and strike price concentrations as the December expiry approaches will be crucial to understanding evolving investor positioning.

Summary

Bharti Airtel’s put options at the ₹2,100 strike price for the 30 December 2025 expiry have attracted significant trading volume and open interest, signalling active hedging and cautious positioning. The stock’s price action near its yearly highs, combined with mixed technical indicators and reduced delivery volumes, paints a nuanced picture of investor sentiment. While the telecom giant remains a large-cap stalwart with solid fundamentals, the options market activity suggests that participants are preparing for potential near-term fluctuations.

As the expiry date draws closer, investors should closely watch the interplay between spot price movements and options market dynamics to gauge the balance between bullish confidence and protective caution in Bharti Airtel’s shares.

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