Divis Laboratories Sees Surge in Call Option Activity Amid Bullish Momentum

Robust Call Option Activity Highlights Investor Optimism

On 11 Feb 2026, Divis Laboratories emerged as the most active stock in call options trading, with the 24 Feb 2026 expiry call options at the ₹6,300 strike price seeing a remarkable 19,124 contracts traded. This translated into a turnover of approximately ₹2,974.55 lakhs, underscoring significant investor interest in leveraged bullish positions. The open interest for these contracts stands at 2,005, indicating sustained commitment beyond intraday speculation.

The underlying stock price at the time was ₹6,331.5, slightly above the strike price, suggesting that traders are positioning for a continued rally in the near term. The concentration of activity at this strike price and expiry date points to a consensus expectation that Divis Laboratories will maintain or exceed current levels over the next two weeks.

Price Performance and Technical Context

Divis Laboratories has outperformed its Pharmaceuticals & Biotechnology sector by 1.86% on the day, with a 1-day return of 2.53% compared to the sector’s 0.71% and the Sensex’s modest 0.13% gain. The stock has recorded gains for three consecutive sessions, delivering a cumulative return of 5.1% during this period. Intraday, it touched a high of ₹6,363.5, marking a 3.04% increase from the previous close.

Technically, the stock is trading above its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term strength. However, it remains below its 100-day and 200-day moving averages, indicating that longer-term momentum has yet to fully align with the recent bullish trend. This mixed technical picture suggests cautious optimism among investors, with room for further upside if the stock can breach these longer-term resistance levels.

Investor Participation and Liquidity Considerations

Despite the positive price action, investor participation has shown signs of moderation. Delivery volume on 10 Feb was 1.23 lakh shares, down 36.21% compared to the 5-day average delivery volume. This decline in delivery volume may reflect profit-booking or a wait-and-watch stance among some shareholders. Nevertheless, liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹4.26 crores based on 2% of the 5-day average traded value, ensuring that institutional and retail investors can transact without significant market impact.

Fundamental and Market Positioning Analysis

Divis Laboratories, with a market capitalisation of ₹1,64,670 crores, is classified as a large-cap stock within the Pharmaceuticals & Biotechnology sector. Despite its size and prominence, the company’s Mojo Score currently stands at 43.0, with a Mojo Grade of Sell, downgraded from Hold on 1 Feb 2026. This downgrade reflects concerns over certain fundamental metrics and market conditions, suggesting that while the stock is experiencing short-term bullishness, longer-term challenges remain.

The Market Cap Grade of 1 further indicates that the stock’s valuation and market capitalisation metrics are relatively weak compared to peers. Investors should weigh these fundamental considerations against the evident bullish positioning in the options market, which may be driven by technical factors or short-term catalysts rather than a broad-based improvement in company fundamentals.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹6,300 strike price for the 24 Feb 2026 expiry is particularly noteworthy. This strike is slightly out-of-the-money relative to the current underlying price, suggesting that traders are betting on a moderate upside within the next two weeks. The high volume and turnover at this strike price indicate a strong consensus around this price level as a key target or resistance point.

Such expiry patterns often precede significant price movements, as traders adjust their positions ahead of the options expiry date. The open interest of 2,005 contracts at this strike also implies that many investors are holding onto their bullish bets, potentially setting the stage for increased volatility and price discovery in the coming days.

Balancing Bullish Sentiment with Caution

While the surge in call option activity and recent price gains point to bullish sentiment, investors should remain cautious given the stock’s fundamental downgrade and mixed technical signals. The decline in delivery volume suggests some hesitancy among long-term holders, and the stock’s position below key long-term moving averages indicates that sustained momentum is not yet assured.

Market participants would be well advised to monitor upcoming earnings announcements, sector developments, and broader market trends that could influence Divis Laboratories’ trajectory. The current options market activity may reflect speculative positioning or hedging strategies that could unwind rapidly if underlying fundamentals do not improve.

Outlook and Investor Takeaways

In summary, Divis Laboratories is currently at a crossroads where technical momentum and options market optimism contrast with fundamental caution. The heavy call option activity at the ₹6,300 strike price for the 24 Feb expiry signals that traders expect the stock to maintain or exceed current levels in the short term. However, the company’s recent downgrade to a Sell rating and subdued delivery volumes suggest that investors should approach with measured expectations.

For investors considering exposure to Divis Laboratories, it is prudent to monitor the evolving options open interest and price action closely, alongside fundamental developments. Those with a higher risk appetite may view the current environment as an opportunity to capitalise on short-term momentum, while more conservative investors might prefer to await clearer signs of fundamental improvement before increasing their holdings.

Ultimately, the interplay between technical signals and fundamental realities will determine Divis Laboratories’ near-term trajectory, making it a stock to watch closely in the coming weeks.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →