CG Power & Industrial Solutions Sees Robust Call Option Activity Ahead of December Expiry

Strong Call Option Interest at Key Strike Prices

Data from the derivatives segment reveals that CG Power & Industrial Solutions witnessed substantial trading volumes in call options with strike prices of ₹680 and ₹700, both expiring on 30 December 2025. The ₹680 strike call option recorded 5,461 contracts traded, generating a turnover of approximately ₹844.35 lakhs, while the ₹700 strike call option saw 4,489 contracts traded with a turnover near ₹368.59 lakhs. Open interest figures stand at 1,435 and 2,063 contracts respectively, indicating sustained investor interest and potential bullish positioning in the near term.

The underlying stock price at the time of this data was ₹687.5, placing the ₹680 strike call option slightly in-the-money and the ₹700 strike call option just out-of-the-money. This spread of activity across these strike prices suggests that market participants are positioning for a possible upward move in the stock price before the December expiry.

Price Performance and Market Context

CG Power & Industrial Solutions has demonstrated resilience in recent trading sessions. The stock outperformed its sector by 2.05% on the day, with a one-day return of 2.08% compared to the sector’s 0.08% and the Sensex’s 0.21%. Over the last three consecutive trading days, the stock has recorded a cumulative gain of 3.42%, reflecting a positive momentum in the underlying equity.

Intraday, the stock touched a high of ₹691.2, representing a 2.7% increase from its previous close. The price currently trades above its 5-day, 20-day, and 200-day moving averages, signalling short- and long-term support levels. However, it remains below the 50-day and 100-day moving averages, indicating some resistance in the medium term that investors may be monitoring closely.

Liquidity metrics also support active trading in CG Power & Industrial Solutions. The stock’s delivery volume on 16 December was 6.8 lakh shares, though this figure represents a 41.81% decline compared to the five-day average delivery volume. Despite this, the stock maintains sufficient liquidity, with an average traded value allowing for trade sizes up to ₹2.23 crore based on 2% of the five-day average traded value.

Investor Positioning and Expiry Dynamics

The concentration of call option contracts at the ₹680 and ₹700 strike prices with the 30 December expiry suggests that investors are positioning for a potential price appreciation in CG Power & Industrial Solutions over the coming weeks. The open interest data, particularly the 2,063 contracts at the ₹700 strike, indicates that a sizeable number of market participants expect the stock to approach or surpass this level by expiry.

Such positioning often reflects a bullish sentiment, as call options provide leveraged exposure to upward price movements while limiting downside risk to the premium paid. The turnover figures, especially the ₹844.35 lakhs at the ₹680 strike, highlight active trading and interest in these contracts, which could influence price volatility as expiry approaches.

Sector and Market Capitalisation Context

CG Power & Industrial Solutions operates within the heavy electrical equipment industry, a sector that often benefits from infrastructure development and industrial growth. The company’s market capitalisation stands at ₹1,05,962 crore, categorising it as a large-cap stock. This scale typically attracts institutional investors and contributes to the stock’s liquidity and trading volumes.

Comparatively, the stock’s recent outperformance relative to its sector and the broader Sensex index may be a factor driving the observed option market activity. Investors appear to be weighing the company’s prospects amid sectoral trends and broader economic conditions.

Outlook and Considerations for Investors

While the call option activity points to a degree of optimism among market participants, investors should consider the broader technical and fundamental context. The stock’s position relative to its moving averages suggests some resistance levels that may need to be overcome for sustained gains. Additionally, the decline in delivery volumes could indicate a cautious stance among long-term holders.

Given the sizeable open interest and turnover in call options, volatility may increase as the 30 December expiry approaches, potentially offering trading opportunities but also requiring careful risk management. Market participants should monitor price action closely alongside sector developments and macroeconomic indicators that could impact the heavy electrical equipment industry.

Summary

CG Power & Industrial Solutions is currently a prominent name in the derivatives market, with active call option trading concentrated at ₹680 and ₹700 strike prices expiring at the end of December. The underlying stock’s recent price performance and liquidity metrics support this activity, reflecting a market environment where investors are positioning for potential upward movement. As expiry nears, the interplay between option market dynamics and stock price behaviour will be closely watched by traders and investors alike.

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