Eicher Motors Ltd Sees Surge in Call Option Activity Ahead of February Expiry

Robust Price Performance and Market Context

Eicher Motors, a leading player in the Indian automobile industry, has been on a steady upward trajectory. The stock hit a new 52-week high of ₹7,786 on 11 February 2026, outperforming its sector by 4.64% and the broader Sensex which remained flat. Over the past three consecutive trading sessions, EICHERMOT has delivered an impressive 8.16% return, reflecting strong investor confidence.

Notably, the stock opened with a gap-up of 2.86% on the day of analysis and traded above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bullish momentum. The Automobile Two & Three Wheelers sector itself gained 2.21%, further supporting the positive sentiment around Eicher Motors.

Investor participation has also intensified, with delivery volumes rising to 2.5 lakh shares on 10 February, a 24.56% increase over the five-day average. Liquidity remains healthy, with the stock capable of handling trade sizes up to ₹4.57 crore based on 2% of the five-day average traded value.

Call Option Activity Highlights

The most active call options for Eicher Motors are concentrated around strike prices ranging from ₹7,500 to ₹7,900, all expiring on 24 February 2026. The underlying stock price at the time stood at ₹7,767, placing these strikes close to or slightly above the current market price, indicating speculative bets on further upside.

The highest volume of contracts traded was at the ₹7,800 strike, with 18,058 contracts exchanged, generating a turnover of ₹2,830.23 lakh and an open interest of 2,881 contracts. This is a clear indication of strong bullish positioning, as traders anticipate the stock to breach this level by expiry.

Other notable strike prices include ₹7,750 with 9,248 contracts traded and ₹7,600 with 8,624 contracts. The ₹7,500 strike also saw significant activity with 6,411 contracts traded, reflecting a broad-based interest across near-the-money and slightly out-of-the-money calls.

Open interest figures remain robust across these strikes, with the ₹7,900 strike holding 1,574 contracts and ₹7,750 at 1,274 contracts, suggesting that traders are not only initiating positions but also maintaining them, reinforcing the bullish outlook.

Mojo Score Upgrade and Market Capitalisation

Reflecting the positive market dynamics, Eicher Motors’ Mojo Score has improved to 71.0, earning a Buy grade as of 11 November 2025, upgraded from a previous Hold rating. This upgrade highlights enhanced confidence in the company’s fundamentals and growth prospects.

The company boasts a substantial market capitalisation of ₹2,00,136 crore, categorising it as a large-cap stock with a Market Cap Grade of 1. This scale provides stability and liquidity, making it an attractive option for institutional and retail investors alike.

Expiry Patterns and Investor Sentiment

The concentration of call option activity around the 24 February 2026 expiry suggests that traders are positioning for a near-term rally. The clustering of open interest and turnover at strikes above the current price indicates expectations of continued upward momentum, possibly driven by upcoming corporate developments or sectoral tailwinds.

Such patterns often precede significant price movements, as option traders hedge or speculate on directional moves. The elevated open interest at higher strikes also implies that investors are willing to pay premiums for the right to buy shares at these levels, underscoring a bullish consensus.

Sectoral Outlook and Comparative Performance

Within the automobile sector, Eicher Motors stands out for its consistent outperformance. While the broader Automobile Two & Three Wheelers sector gained 2.21% on the day, EICHERMOT surged 6.33%, more than triple the sector’s advance. This relative strength is supported by the company’s strong brand presence, robust product pipeline, and favourable market conditions.

Compared to the Sensex, which was essentially flat with a -0.01% return, Eicher Motors’ gains highlight its defensive qualities and growth potential amid broader market volatility.

Investor Takeaway and Strategic Implications

The surge in call option volumes and open interest at strike prices above the current market level signals a strong bullish sentiment among traders and investors. This is corroborated by the stock’s recent price action, sector outperformance, and upgraded Mojo Grade.

For investors, this presents an opportunity to consider Eicher Motors as a growth-oriented addition to portfolios, especially given its large-cap status and liquidity. However, as with all derivatives activity, it is prudent to monitor volatility and expiry outcomes closely, as option markets can amplify both gains and losses.

Given the stock’s current momentum and positive technical indicators, a sustained rally towards and beyond the ₹7,900 strike price appears plausible in the near term. Investors should also keep an eye on broader sector trends and macroeconomic factors that could influence automobile demand and supply chains.

Conclusion

Eicher Motors Ltd is currently at the forefront of call option trading activity, reflecting heightened bullishness and investor confidence. The combination of strong price performance, upgraded fundamental ratings, and concentrated option interest near key strike prices suggests that the stock is poised for further gains ahead of the 24 February 2026 expiry. Market participants should weigh these factors carefully when considering exposure to this automobile sector heavyweight.

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