Dixon Technologies Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Trading Highlights

Data from the derivatives market shows that Dixon Technologies has attracted substantial put option volumes across several strike prices for the 30 December 2025 expiry. The strike prices with the highest number of contracts traded include ₹12,250, ₹12,750, ₹13,000, ₹11,000, and ₹11,750. Among these, the ₹13,000 strike price recorded the largest turnover of ₹947.5 lakhs with 3,742 contracts traded and an open interest of 7,587 contracts, indicating a strong focus on this level by market participants.

Other notable strike prices include ₹12,250 with 4,763 contracts traded and a turnover of ₹501.4 lakhs, and ₹12,750 with 4,643 contracts traded generating ₹872.8 lakhs in turnover. The ₹11,000 strike price saw 4,490 contracts traded with a turnover of ₹103.9 lakhs, while the ₹11,750 strike price recorded 3,488 contracts traded and ₹196.7 lakhs in turnover. Open interest figures at these strikes suggest that investors are positioning themselves for potential downside protection or speculative plays below the current underlying value of ₹12,580.

Underlying Stock Performance and Market Context

Dixon Technologies’ underlying stock price closed at ₹12,580, which is approximately 4.13% above its 52-week low of ₹12,130. The stock has underperformed its sector by 0.92% on the day, with a one-day return of -1.59% compared to the sector’s -2.08% and the Sensex’s -0.19%. The stock has experienced a consecutive three-day decline, resulting in a cumulative return of -4.86% over this period. This downward trend is reflected in the stock trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a cautious technical outlook.

Investor participation has shown signs of rising interest, with delivery volumes reaching 1.94 lakh shares on 22 December 2025, marking an 8.27% increase compared to the five-day average delivery volume. Liquidity remains adequate, with the stock’s traded value supporting trade sizes of up to ₹12.88 crore based on 2% of the five-day average traded value.

Bearish Positioning and Hedging Implications

The concentration of put option activity at strike prices both above and below the current market price suggests a complex positioning strategy among investors. The high open interest at the ₹13,000 strike, which is above the current underlying value, may indicate protective hedging by holders of the stock or speculative bets anticipating a price correction. Similarly, significant activity at lower strikes such as ₹11,000 and ₹11,750 points to expectations of potential downside or attempts to capitalise on volatility.

Put options serve as a tool for investors to hedge against declines or to express bearish views with limited risk. The clustering of contracts near the current price level and slightly out-of-the-money strikes reflects a market environment where participants are preparing for possible price fluctuations as the December expiry nears.

Expiry Patterns and Market Sentiment

The 30 December 2025 expiry date is a focal point for option traders in Dixon Technologies, with volumes and open interest peaking as investors adjust their positions ahead of year-end. This expiry coincides with broader market considerations, including sector performance and macroeconomic factors influencing the electronics and appliances industry.

Given the stock’s recent underperformance relative to its sector and the Sensex, the elevated put option activity may be interpreted as a cautious stance by market participants. The stock’s trading below all major moving averages further supports a technical perspective that investors are factoring in potential near-term weakness or volatility.

Sector and Market Capitalisation Context

Dixon Technologies operates within the Electronics & Appliances sector, a segment that has faced mixed conditions amid evolving consumer demand and supply chain challenges. The company’s market capitalisation stands at approximately ₹77,938 crore, placing it in the mid-cap category. This positioning often attracts a diverse investor base balancing growth prospects with risk management strategies.

In comparison to sector peers, Dixon Technologies’ recent price action and option market behaviour highlight a nuanced investor outlook. While the sector has experienced some volatility, the stock’s relative underperformance and the surge in put option interest suggest that market participants are factoring in company-specific risks or broader sector headwinds.

Technical Indicators and Investor Behaviour

The stock’s position below all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicates a prevailing bearish technical trend. This technical backdrop may be influencing the elevated put option volumes as traders seek to hedge existing positions or speculate on further declines.

Additionally, the rise in delivery volumes points to increased investor engagement, possibly reflecting repositioning ahead of the expiry or reactions to recent price movements. The liquidity profile supports active trading, enabling sizeable transactions without significant market impact.

Outlook Ahead of Expiry

As the 30 December 2025 expiry approaches, the options market activity in Dixon Technologies will remain a key indicator of investor sentiment. The concentration of put options at various strike prices suggests that market participants are preparing for a range of outcomes, including potential downside risks and volatility spikes.

Investors and traders should monitor open interest changes and volume patterns closely, as shifts in these metrics can provide early signals of changing market expectations. The interplay between the underlying stock’s price action and options market dynamics will be critical in shaping near-term trading strategies.

Conclusion

Dixon Technologies (India) Ltd’s prominence in put option trading ahead of the December expiry highlights a cautious market stance. The significant volumes and open interest at multiple strike prices reflect a blend of hedging and speculative activity amid a technical environment marked by recent declines and underperformance relative to the sector. As expiry draws near, the options market will continue to offer valuable insights into investor positioning and sentiment for this mid-cap electronics and appliances company.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Start Saving Now →