Dixon Technologies Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Concentrated Near Current Levels

Data from the derivatives market reveals that Dixon Technologies has attracted significant put option volumes, particularly at strike prices close to its current underlying value of ₹12,468. The strike prices of ₹12,000 and ₹12,500 have recorded the highest number of contracts traded, with 9,470 and 3,576 contracts respectively. These strikes also show substantial open interest, with 4,847 contracts at ₹12,000 and 3,047 at ₹12,500, indicating sustained investor interest in downside protection or speculative bearish bets.

Other notable strike prices include ₹11,000 and ₹11,500, where 7,181 and 4,232 contracts were traded respectively. The open interest at these levels stands at 3,156 and 1,472 contracts, suggesting that investors are also positioning for potential declines well below the current market price. The strike price of ₹12,250 has seen 3,287 contracts traded with an open interest of 1,757, further emphasising the clustering of put activity around the stock’s prevailing price.

Turnover and Market Implications

The turnover generated from these put options is substantial, with the ₹12,000 strike alone accounting for ₹12.26 crores in traded value. The ₹12,500 strike follows with a turnover of ₹7.98 crores, while the ₹12,250 strike has seen ₹5.61 crores. Lower strike prices such as ₹11,000 and ₹11,500 have turnover values of approximately ₹3.05 crores each. This level of activity in put options suggests a heightened focus on risk management or speculative positioning as the expiry date nears.

Price and Technical Context

Dixon Technologies’ stock price recently hit a new 52-week low of ₹12,130, reflecting pressure in the near term. The stock’s performance today was broadly in line with its sector, which also saw modest gains. Notably, the stock has reversed its trend after three consecutive days of decline, registering a 1.42% return in the last trading session. However, it continues to trade below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a prevailing bearish technical setup.

Investor participation has shown signs of rising interest, with delivery volumes on 10 December reaching 4.47 lakh shares, a 264.7% increase compared to the five-day average. The stock’s liquidity remains adequate for sizeable trades, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹11.33 crores.

Expiry Patterns and Investor Sentiment

The concentration of put option activity at the 30 December 2025 expiry date suggests that market participants are positioning for potential volatility or downside risk in the coming weeks. The clustering of open interest and traded volumes at strikes slightly below and above the current market price indicates a hedging strategy to protect long positions or a speculative stance anticipating price corrections.

Such patterns are often observed when investors seek to mitigate risk ahead of key events or amid uncertain market conditions. The sizeable open interest at multiple strike prices also points to a layered approach in managing exposure, with some investors opting for nearer-the-money protection while others are prepared for more significant declines.

Sector and Market Comparison

Within the Electronics & Appliances sector, Dixon Technologies holds a mid-cap market capitalisation of approximately ₹76,021 crores. Its one-day return of 1.42% trails slightly behind the sector’s 1.98% gain but outperforms the broader Sensex, which recorded a marginal decline of 0.23% on the same day. This relative performance, combined with the put option activity, reflects a nuanced market view where investors balance sector optimism with caution on individual stock risks.

Technical Indicators and Investor Behaviour

The stock’s trading below all major moving averages signals a bearish technical environment, which may be influencing the elevated put option interest. The weighted average price of recent trades has been closer to the stock’s low price, suggesting that sellers have exerted pressure near support levels. Meanwhile, the surge in delivery volumes indicates that investors are increasingly committing to positions, possibly in anticipation of a price correction or consolidation phase.

Outlook and Considerations for Investors

The pronounced put option activity in Dixon Technologies ahead of the December expiry highlights a market environment where investors are actively managing downside risk. While the stock has shown some recovery after recent declines, the technical indicators and option market data suggest caution remains prevalent.

Investors should monitor the evolving open interest and volume patterns in the options market, as these can provide early signals of shifts in sentiment or potential price movements. Additionally, keeping an eye on sector trends and broader market conditions will be essential to contextualise Dixon Technologies’ performance and risk profile.

Given the stock’s liquidity and active trading volumes, market participants have the flexibility to implement various strategies, whether for hedging existing positions or speculative purposes. The interplay between the underlying stock’s price action and the derivatives market will continue to offer insights into investor expectations as the expiry date approaches.

Summary

Dixon Technologies (India) Ltd is currently the focal point of put option trading activity, with significant volumes and open interest concentrated at strike prices near its current market value. The data reflects a cautious stance among investors, with hedging and bearish positioning evident ahead of the 30 December 2025 expiry. Technical indicators and delivery volumes further underscore the complex market dynamics surrounding the stock, making it a key watch for traders and investors in the Electronics & Appliances sector.

Only ₹14,999 - Get MojoOne + Stock of the Week for 2 Years PLUS 6 Months FREE Claim 83% OFF →