Bharti Airtel Sees Heavy Call Option Activity Ahead of December Expiry

Call Option Trading Highlights

Data from the derivatives segment reveals that Bharti Airtel's call options expiring on 30 December 2025 have witnessed substantial trading volumes, particularly at strike prices of ₹2,100 and ₹2,200. The 2,100 strike call options recorded 3,602 contracts traded, generating a turnover of approximately ₹977.29 lakhs, with an open interest of 1,315 contracts. Meanwhile, the 2,200 strike call options saw 3,216 contracts traded, with a turnover of ₹235.86 lakhs and an open interest of 2,786 contracts.

The underlying stock price at the time of this activity stood at ₹2,119.90, positioning the 2,100 strike calls slightly in-the-money and the 2,200 strike calls just out-of-the-money. The elevated open interest at these strikes suggests that market participants are actively positioning themselves for potential price movements as the expiry date approaches.

Stock Price and Market Context

Bharti Airtel's stock price is currently trading approximately 3.08% below its 52-week high of ₹2,174.50. On 26 November 2025, the stock opened with a gap down of 2.66%, touching an intraday low of ₹2,097.50, which represents a 2.97% decline from the previous close. Despite this, the stock remains above its 20-day, 50-day, 100-day, and 200-day moving averages, although it is trading below its 5-day moving average, indicating some short-term consolidation or profit-taking.

Investor participation appears to have moderated, with delivery volume on 25 November recorded at 41.55 lakh shares, reflecting a 27.19% reduction compared to the five-day average delivery volume. 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.

Interpreting the Options Activity

The concentration of call option contracts at the 2,100 and 2,200 strike prices for the December expiry suggests a predominantly bullish stance among traders, anticipating that Bharti Airtel's share price may approach or surpass these levels by the end of the year. The higher open interest at the 2,200 strike, despite it being slightly out-of-the-money, indicates speculative interest or hedging strategies that could be linked to expectations of upward price momentum.

Such positioning is often observed when investors seek leveraged exposure to potential gains or aim to hedge existing stock holdings against moderate price rises. The turnover figures further underline the active participation in these strikes, with the 2,100 strike calls commanding nearly four times the turnover of the 2,200 strike calls, reflecting a preference for options closer to the current market price.

Sector and Market Performance

On the day in question, Bharti Airtel underperformed its sector, with a one-day return of -2.19% compared to the Telecom - Services sector's -1.85%. The broader Sensex index posted a positive return of 0.47%, highlighting a divergence between the stock's performance and the overall market trend. This relative underperformance may be contributing to the cautious positioning observed in the options market, as investors weigh sector dynamics against company-specific factors.

Bharti Airtel's market capitalisation stands at ₹12,32,082 crore, categorising it firmly as a large-cap stock within the telecom services industry. This scale often attracts institutional interest, which can influence derivatives activity and liquidity.

Technical Indicators and Investor Sentiment

Bharti Airtel's position above its medium- and long-term moving averages suggests that the stock has maintained an overall upward trajectory over recent months. However, the dip below the 5-day moving average and the gap down opening point to short-term volatility and possible profit-booking by traders.

The decline in delivery volume may indicate a temporary reduction in investor conviction or a wait-and-watch approach ahead of the December expiry. Such patterns are common as market participants adjust their positions in response to evolving market conditions and upcoming corporate or macroeconomic events.

Outlook Ahead of Expiry

With the December 2025 expiry approaching, the active call option trading at key strike prices for Bharti Airtel will remain a focal point for market watchers. The interplay between open interest, traded volumes, and underlying price movements will provide insights into investor expectations and potential price trajectories.

Investors and traders should monitor how the stock reacts to sector trends, broader market cues, and company-specific developments to better understand the evolving sentiment reflected in the options market.

Summary

Bharti Airtel's derivatives market activity highlights a significant interest in call options at strikes near the current market price, signalling a cautiously optimistic outlook among investors. The stock's proximity to its 52-week high, combined with mixed intraday performance and moderate investor participation, paints a nuanced picture of market sentiment. As expiry approaches, the options data will continue to serve as a valuable barometer for positioning and expectations within this telecom giant.

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