Dixon Technologies Sees Heavy Call Option Activity Ahead of February Expiry

Call Option Activity Highlights

On 5 February 2026, Dixon Technologies emerged as one of the most actively traded stocks in the call options segment. The strike price of ₹12,000 saw the highest number of contracts traded at 5,133, generating a turnover of ₹695.37 lakhs and an open interest of 4,325 contracts. Meanwhile, the ₹11,500 strike price recorded 4,015 contracts traded with a turnover of ₹926.40 lakhs and an open interest of 2,592 contracts. These figures indicate robust investor interest in call options with expiry less than three weeks away, suggesting expectations of upward price movement from the current underlying value of ₹11,255.

Price and Trend Analysis

Despite the bullish options activity, Dixon Technologies’ stock price has recently underperformed its sector and broader market indices. The stock declined by 3.58% on the day, marginally outperforming the Consumer Durables - Electronics sector’s fall of 3.59%, but lagging the Sensex’s modest 0.47% drop. The stock touched an intraday low of ₹11,432, down 2.11%, marking a reversal after three consecutive days of gains.

Technical indicators present a mixed picture. The share price remains above its 5-day and 20-day moving averages, signalling short-term support, but continues to trade below its 50-day, 100-day, and 200-day moving averages, reflecting longer-term resistance and a cautious outlook among investors. This divergence suggests that while short-term momentum may be building, the stock faces significant hurdles to sustain a sustained rally.

Sector and Market Context

The Consumer Durables - Electronics sector has been under pressure, declining by 2.99% on the same day, weighed down by broader macroeconomic concerns and supply chain disruptions. Dixon Technologies, with a market capitalisation of approximately ₹68,332.15 crores, is classified as a mid-cap stock within this sector. Its Mojo Score currently stands at 51.0 with a Mojo Grade of Hold, downgraded from Buy on 3 November 2025, reflecting a tempered outlook based on recent performance and valuation metrics.

Investor participation has been rising, with delivery volumes on 4 February reaching 4.65 lakh shares, a 27.59% increase over the five-day average. This heightened activity underscores growing interest in the stock, possibly driven by speculative positioning in the options market and anticipation of upcoming corporate developments or sectoral tailwinds.

Investor Positioning and Expiry Patterns

The concentration of call option contracts at the ₹11,500 and ₹12,000 strike prices, both above the current underlying price, indicates a predominantly bullish stance among traders. Open interest data reveals that the ₹12,000 strike has a significantly higher open interest, suggesting that investors are betting on the stock breaking through this resistance level by the 24 February expiry.

Turnover figures further support this view, with the ₹11,500 strike generating a higher turnover despite fewer contracts traded, implying that these contracts may be priced at higher premiums or involve larger lot sizes. The expiry date being less than three weeks away adds urgency to these positions, as traders seek to capitalise on any short-term price movements.

Liquidity and Trading Viability

Dixon Technologies exhibits sufficient liquidity to support sizeable trades, with a five-day average traded value allowing for trade sizes up to ₹34.15 crores based on 2% of average volume. This liquidity is crucial for options traders who require efficient entry and exit points without significant slippage, especially in a mid-cap stock where volume can fluctuate.

The rising delivery volumes and active options market suggest that institutional and retail investors alike are engaging with the stock, possibly anticipating positive catalysts such as new product launches, order inflows, or sectoral recovery.

Outlook and Strategic Considerations

While the recent downgrade from Buy to Hold by MarketsMOJO on 3 November 2025 reflects caution, the active call option positioning suggests that market participants are optimistic about a near-term recovery or breakout. Investors should weigh the stock’s technical resistance levels against the sector’s current weakness and broader macroeconomic factors.

Given the mixed signals, a prudent approach would be to monitor the stock’s ability to sustain above its 50-day moving average and track open interest changes in the lead-up to the 24 February expiry. The elevated open interest at higher strike prices could also lead to increased volatility as expiry approaches, presenting both opportunities and risks for traders.

Fundamental investors may want to consider Dixon Technologies’ market cap grade of 2 and its mid-cap status, which often entails higher volatility but also potential for outsized gains if sector conditions improve. The company’s position within the Electronics & Appliances industry remains significant, but competitive pressures and supply chain challenges warrant close attention.

Conclusion

Dixon Technologies is currently at a crossroads, with strong call option activity signalling bullish sentiment amid a backdrop of recent price weakness and sectoral headwinds. The stock’s technical setup and liquidity profile make it an attractive candidate for options traders seeking to capitalise on potential upside ahead of the February expiry. However, investors should remain cautious and consider the broader market context and company fundamentals before making directional bets.

As the expiry date approaches, the interplay between open interest, strike prices, and underlying price movements will be critical in determining the stock’s trajectory. Market participants are advised to stay vigilant and adjust their strategies accordingly.

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