Eicher Motors Sees Heavy Put Option Activity Amid Bullish Price Momentum

Robust Price Action Contrasts with Elevated Put Option Interest

On 11 February 2026, Eicher Motors Ltd (NSE: EICHERMOT) hit a new 52-week high of ₹7,786, outperforming its sector by 4.64% and the broader Sensex which was essentially flat. The stock has gained 8.16% over the past three consecutive sessions, opening today with a gap-up of 2.86% and touching an intraday high of ₹7,786, reflecting strong bullish momentum. It currently trades well above all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day, underscoring sustained investor confidence.

Despite this positive price trajectory, the derivatives market reveals a contrasting narrative with heavy put option activity concentrated at strike prices ranging from ₹7,100 to ₹7,600, all expiring on 24 February 2026. This divergence suggests that market participants are either positioning for a potential near-term correction or actively hedging their long exposure amid elevated valuations.

Detailed Put Option Metrics Highlight Investor Sentiment

The most actively traded put options for Eicher Motors on 11 February 2026 were:

• Strike ₹7,600: 4,006 contracts traded, turnover of ₹4.18 crores, open interest at 1,568 contracts
• Strike ₹7,300: 4,703 contracts traded, turnover of ₹1.56 crores, open interest at 1,276 contracts
• Strike ₹7,400: 3,357 contracts traded, turnover of ₹1.65 crores, open interest at 1,086 contracts
• Strike ₹7,100: 2,864 contracts traded, turnover of ₹0.48 crores, open interest at 1,746 contracts
• Strike ₹7,200: 2,616 contracts traded, turnover of ₹0.61 crores, open interest at 947 contracts

The underlying stock price at ₹7,767.5 places these put strikes slightly out-of-the-money to near-the-money, indicating that traders are actively seeking downside protection or speculating on a pullback from current highs. The highest turnover and contract volume at the ₹7,600 and ₹7,300 strikes further emphasise these levels as key psychological support zones for market participants.

Mojo Score Upgrade Reinforces Positive Fundamentals

Adding to the complexity of the market stance, Eicher Motors was upgraded from a Hold to a Buy rating on 11 November 2025, with a robust Mojo Score of 71.0. The company holds a Market Cap Grade of 1, reflecting its large-cap stature with a market capitalisation of ₹2,00,136 crores. This upgrade signals improved fundamentals and positive outlook from analysts, which contrasts with the cautious positioning seen in the options market.

Sector and Market Context

The automobile sector, particularly the Two & Three Wheelers segment, has gained 2.21% on the day, with Eicher Motors outperforming this benchmark significantly. Rising investor participation is evident from a 24.56% increase in delivery volume to 2.5 lakh shares on 10 February, compared to the 5-day average, indicating heightened interest and liquidity. The stock’s liquidity supports sizeable trade sizes up to ₹4.57 crores, facilitating active institutional and retail participation.

Interpreting the Put Option Surge: Hedging or Bearish Bets?

The surge in put option volumes and open interest at strikes below the current market price can be interpreted in multiple ways. One plausible explanation is that institutional investors and traders are employing puts as a hedge against their long stock positions, especially given the stock’s recent sharp gains and elevated valuation levels. This strategy would protect portfolios from a sudden downside move while allowing participation in further upside.

Alternatively, the heavy put activity could reflect speculative bearish bets anticipating a near-term correction or profit booking. The concentration of open interest at strikes ₹7,100 to ₹7,600, combined with the expiry date less than two weeks away, suggests that traders are positioning for volatility around these levels. Given the stock’s recent outperformance relative to the sector and Sensex, some profit-taking or technical consolidation could be expected.

Expiry Patterns and Market Implications

The 24 February 2026 expiry is attracting significant attention, with put options turnover exceeding ₹8.5 crores across the top five strikes. This heightened activity ahead of expiry often precedes increased volatility as traders adjust or unwind positions. Investors should monitor open interest changes closely in the coming sessions to gauge whether the put option interest translates into actual price pressure or remains a hedging mechanism.

Technical and Fundamental Outlook

From a technical perspective, Eicher Motors’ strong momentum and trading above all major moving averages support a bullish medium-term outlook. However, the elevated put option interest signals caution, suggesting that risk management remains paramount. On the fundamental front, the recent upgrade to a Buy rating and a solid Mojo Score of 71.0 reflect confidence in the company’s earnings growth and market positioning within the automobile sector.

Investor Takeaway

Investors should weigh the bullish technical and fundamental signals against the increased put option activity signalling caution. The stock’s recent outperformance and upgrade to a Buy rating by MarketsMOJO suggest strong underlying momentum. However, the concentrated put option interest near current price levels indicates that market participants are either hedging or anticipating a short-term correction. Prudent investors may consider protective strategies or monitor open interest trends closely ahead of the 24 February expiry to better time entries or exits.

Given Eicher Motors’ large-cap status and liquidity, it remains a key stock to watch within the automobile sector, especially as the market navigates evolving macroeconomic and sector-specific dynamics in early 2026.

Summary of Key Metrics

• Stock Price (11 Feb 2026): ₹7,767.5 (New 52-week high ₹7,786)
• Mojo Score: 71.0 (Upgraded from Hold to Buy on 11 Nov 2025)
• Market Cap: ₹2,00,136 crores (Large Cap)
• Put Option Strike Prices: ₹7,100 to ₹7,600
• Highest Put Volume: 4,703 contracts at ₹7,300 strike
• Expiry Date: 24 February 2026
• Sector Performance: Automobile Two & Three Wheelers +2.21%
• Stock Outperformance: +6.37% vs Sector +2.08% and Sensex -0.01%

Overall, the interplay between strong price gains and elevated put option activity highlights a nuanced market sentiment around Eicher Motors, warranting close attention from investors and traders alike.

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