Robust Call Option Volumes Signal Investor Optimism
Data from the derivatives market reveals that Eicher Motors Ltd (NSE: EICHERMOT) has emerged as one of the most actively traded stocks in call options, particularly for contracts expiring on 24 February 2026. The strike prices of ₹8,100 and ₹8,200 have attracted significant attention, with 7,789 and 5,409 contracts traded respectively. This translates to a combined turnover exceeding ₹10.6 crores, underscoring strong speculative interest.
Open interest figures further reinforce this bullish positioning, with 1,629 contracts outstanding at the ₹8,100 strike and 2,100 at ₹8,200. Given the underlying stock price of ₹8,103.5, these strike prices are close to the money, indicating traders are positioning for a potential upward move in the near term.
Technical Strength Supports Positive Outlook
Eicher Motors is currently trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — a technical setup that typically favours continued price appreciation. The stock’s 1-day return of 1.21% notably outpaced the automobile sector’s 0.23% gain and the Sensex’s marginal decline of 0.13% on the same day, highlighting its relative strength.
Despite a sharp decline in delivery volume on 18 February, which fell by 72.1% to 1.22 lakh shares compared to the 5-day average, liquidity remains adequate. The stock’s traded value comfortably supports trade sizes up to ₹10.6 crores, ensuring that institutional and retail investors can transact without significant price impact.
Fundamental Upgrades Bolster Investor Confidence
MarketsMOJO recently upgraded Eicher Motors’ mojo grade from 'Hold' to 'Buy' on 11 November 2025, reflecting improved fundamentals and positive earnings momentum. The company’s mojo score stands at a robust 78.0, supported by a market cap grade of 1, indicating its status as a large-cap leader within the automobile sector.
With a market capitalisation of approximately ₹2,19,815 crores, Eicher Motors commands a dominant position in the industry, benefiting from strong brand equity and consistent financial performance. This upgrade has likely contributed to the surge in call option activity as investors anticipate further upside potential.
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Expiry Patterns and Strike Price Concentration
The concentration of call option activity at the ₹8,100 and ₹8,200 strike prices for the 24 February expiry suggests that traders are positioning for a breakout above current levels. The underlying stock price of ₹8,103.5 is already near these strikes, implying that the market expects Eicher Motors to sustain or exceed these levels within the next few days.
Such clustering of open interest and traded contracts near the money often precedes significant price moves, as option writers and buyers adjust their hedges and speculative bets. The relatively high open interest at these strikes also indicates potential support zones, as option sellers may look to defend these levels to avoid losses.
Sectoral and Market Context
Within the automobile sector, Eicher Motors continues to stand out due to its premium motorcycle segment and strong export growth. The sector’s modest 1-day return of 0.23% contrasts with Eicher’s 1.21% gain, highlighting its leadership. Meanwhile, the broader Sensex index declined by 0.13%, reflecting mixed market sentiment.
Investors should note that while the call option activity signals bullishness, the sharp fall in delivery volumes may indicate some caution among long-term holders. This divergence between derivatives optimism and spot market participation warrants close monitoring in the coming sessions.
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Implications for Investors
For investors and traders, the current surge in call option volumes at near-the-money strikes ahead of expiry offers actionable insights. The bullish positioning suggests expectations of continued price strength, potentially driven by positive earnings outlooks, favourable sector dynamics, and technical momentum.
However, the reduced delivery volumes caution against complacency, signalling that some market participants may be booking profits or awaiting clearer directional cues. As such, a balanced approach combining technical analysis with fundamental research is advisable.
Given Eicher Motors’ upgraded mojo grade and strong market cap standing, the stock remains a compelling candidate for long-term investors seeking exposure to the premium two-wheeler segment in India.
Looking Ahead
As the 24 February expiry approaches, market participants will closely watch price action around the ₹8,100 and ₹8,200 levels. Sustained buying interest and further call option accumulation could propel Eicher Motors towards new highs, while any sharp reversals may trigger profit-taking and volatility.
Investors should also monitor broader market trends and sectoral developments, including raw material costs and regulatory changes, which could impact the stock’s trajectory.
Summary
Eicher Motors Ltd is currently exhibiting strong bullish signals in the derivatives market, with heavy call option activity concentrated at key strike prices ahead of the February expiry. Supported by a recent upgrade to a 'Buy' mojo grade and robust technical indicators, the stock is well positioned to capitalise on positive sectoral momentum. While delivery volumes have dipped, liquidity remains sufficient for sizeable trades, making Eicher Motors an attractive proposition for both traders and long-term investors.
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