Dixon Technologies Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Volumes Highlight Investor Optimism

The electronics and appliances firm, currently valued at a market capitalisation of ₹71,069.07 crores, has emerged as one of the most actively traded stocks in the call options segment. Data from the latest trading session reveals that the 24 February 2026 expiry call options at strike prices of ₹11,700 and ₹12,000 have attracted significant interest.

Specifically, the ₹12,000 strike call option recorded 10,365 contracts traded, generating a turnover of ₹1045.62 lakhs and an open interest of 6,037 contracts. Meanwhile, the ₹11,700 strike call option saw 5,538 contracts traded with a turnover of ₹938.61 lakhs and an open interest of 2,398 contracts. These figures underscore a strong bullish sentiment, as investors position themselves for potential upside beyond the current underlying value of ₹11,701.

The elevated open interest at the ₹12,000 strike, which is slightly above the current market price, suggests that traders are anticipating a rally towards or beyond this level by expiry. This is further supported by the substantial turnover, indicating active participation from both institutional and retail investors.

Price Performance and Technical Indicators

On the price front, Dixon Technologies outperformed its sector by 0.3% on the day, registering a 2.58% gain compared to the sector’s 1.74% and the Sensex’s marginal 0.06% rise. The stock touched an intraday high of ₹11,769, marking a 3.08% increase, signalling a potential trend reversal after two consecutive days of decline.

Technical analysis reveals that the stock is trading above its 5-day and 20-day moving averages, indicating short-term strength. However, it remains below the 50-day, 100-day, and 200-day moving averages, suggesting that medium to long-term momentum has yet to fully recover. This mixed technical picture may explain the cautious stance reflected in the recent downgrade of its mojo grade from Buy to Hold on 3 November 2025.

Investor participation has also been on the rise, with delivery volumes reaching 1.3 lakh shares on 13 February, a 4.99% increase compared to the five-day average. Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹11.21 crores based on 2% of the five-day average traded value, making it accessible for sizeable institutional trades.

Mojo Score and Market Sentiment

Dixon Technologies currently holds a mojo score of 51.0 with a mojo grade of Hold, reflecting a tempered outlook from analysts. This represents a downgrade from its previous Buy rating, signalling some caution amid evolving market conditions. The downgrade on 3 November 2025 likely reflects concerns over valuation pressures or sector headwinds, despite the company’s solid fundamentals and market position.

Nevertheless, the strong call option activity and recent price gains suggest that a segment of the market remains optimistic about the company’s near-term growth potential. The electronics and appliances sector, in which Dixon operates, continues to benefit from rising consumer demand and technological upgrades, factors that could support further upside.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity around the 24 February 2026 expiry is noteworthy. This expiry date is less than two weeks away, indicating that traders are positioning for a near-term catalyst or event that could drive the stock higher. The strike prices of ₹11,700 and ₹12,000 are close to the current market price, suggesting that investors expect the stock to breach these levels imminently.

Open interest data corroborates this view, with the ₹12,000 strike showing more than double the open interest of the ₹11,700 strike. This skew towards higher strike prices is a classic indicator of bullish sentiment, as traders anticipate the stock moving into higher price brackets before expiry.

Such positioning often precedes earnings announcements, product launches, or sectoral developments that could act as catalysts. Investors should monitor upcoming corporate events and broader market trends to gauge the sustainability of this bullish momentum.

Implications for Investors

For investors, the surge in call option volumes at near-the-money strikes signals a growing appetite for upside exposure in Dixon Technologies. This could be driven by expectations of improved earnings, favourable sector dynamics, or technical breakout potential. However, the Hold mojo grade and the stock’s position below longer-term moving averages counsel prudence.

Investors should weigh the bullish signals from options activity against the broader technical and fundamental backdrop. The recent price rally and rising delivery volumes are encouraging, but the stock’s medium-term trend remains uncertain. Monitoring open interest changes and strike price shifts in the coming days will provide further clarity on market conviction.

Additionally, given the stock’s liquidity profile, institutional investors can execute sizeable trades without significant market impact, which may further support price stability and momentum if positive news emerges.

Conclusion

Dixon Technologies is currently at a pivotal juncture, with strong call option activity reflecting bullish sentiment ahead of the 24 February expiry. While the stock has outperformed its sector and shown signs of a short-term trend reversal, the recent downgrade to a Hold rating and mixed technical indicators suggest that investors should remain vigilant. The coming weeks will be critical in determining whether this momentum can be sustained or if profit-taking pressures will emerge.

Overall, the options market provides valuable insight into investor expectations, and Dixon’s active call option trading highlights its prominence as a stock to watch in the electronics and appliances sector.

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