GMR Airports Sees Surge in Call Option Activity Amid Bullish Rebound

Robust Call Option Activity Highlights Investor Sentiment

On 16 February 2026, GMR Airports Ltd emerged as the most active stock in call options trading, with 6,859 contracts exchanged at the ₹100 strike price for the 24 February expiry. This activity generated a substantial turnover of ₹717.62 lakhs, underscoring strong market interest in the stock’s near-term upside potential. Open interest stood at 3,138 contracts, indicating sustained positions rather than mere speculative trades.

The underlying stock price was ₹98.74 at the time, just shy of the ₹100 strike, suggesting that traders are positioning for a breakout above this psychologically significant level within the coming week. The concentration of call options at this strike price reflects a consensus expectation of upward momentum, possibly driven by recent technical and fundamental developments.

Price Performance and Technical Indicators

GMR Airports Ltd outperformed its Transport Infrastructure sector by 5.26% on the day, registering a 5.55% gain and touching an intraday high of ₹99.36. This marked a reversal after four consecutive days of decline, signalling a potential trend shift. The stock’s 1-day return of 5.03% notably surpassed the sector’s 0.48% and the Sensex’s marginal 0.06% gains, highlighting its relative strength.

Technically, the stock is trading above its 5-day, 20-day, 100-day, and 200-day moving averages, though it remains below the 50-day moving average. This mixed technical picture suggests a short-term bullish bias tempered by medium-term resistance. The recent price action and option market activity together point to a growing conviction among traders that the stock may breach this resistance soon.

However, investor participation appears to be waning, with delivery volumes on 13 February falling by 33.5% compared to the 5-day average, despite the price rally. This divergence could indicate cautious optimism, where traders prefer derivatives exposure over outright equity positions to manage risk.

Fundamental Context and Market Capitalisation

GMR Airports Ltd operates within the Transport Infrastructure sector and holds a mid-cap market capitalisation of approximately ₹99,275 crores. Despite the recent price strength, the company’s Mojo Score remains subdued at 44.0, with a Sell grade assigned on 2 September 2025, downgraded from a Strong Sell. The Market Cap Grade is 2, reflecting moderate size but limited momentum from a fundamental perspective.

This rating downgrade suggests that while the stock is attracting speculative interest in the options market, underlying fundamentals and growth prospects may not yet justify a strong buy stance. Investors should weigh the technical optimism against these fundamental headwinds when considering exposure.

Expiry Patterns and Market Implications

The expiry date of 24 February 2026 is just days away, intensifying the focus on near-term price movements. The heavy call option volume at the ₹100 strike price suggests that traders are betting on a breakout above this level before expiry. If the stock manages to close above ₹100, these call options could become significantly profitable, potentially triggering further buying interest.

Open interest data confirms that these positions are not fleeting; rather, they represent a committed bullish stance. This could lead to increased volatility as expiry approaches, with traders adjusting their positions in response to price fluctuations and market news.

Liquidity and Trading Considerations

Liquidity remains adequate for sizeable trades, with the stock’s traded value supporting transactions up to ₹1.9 crores based on 2% of the 5-day average traded value. This ensures that institutional and retail investors can enter or exit positions without significant price impact, an important factor given the heightened option activity.

However, the decline in delivery volumes suggests that some investors may be shifting towards derivatives to capitalise on expected moves while limiting capital outlay and risk exposure. This trend is consistent with the observed surge in call option contracts.

Balancing Bullish Sentiment with Caution

While the surge in call option activity and recent price gains point to a bullish near-term outlook for GMR Airports Ltd, investors should remain cautious. The downgrade in Mojo Grade to Sell and the moderate Mojo Score reflect underlying concerns about the company’s fundamentals and growth trajectory.

Moreover, the stock’s position below the 50-day moving average indicates that medium-term resistance remains a hurdle. The divergence between price gains and falling delivery volumes further suggests that the rally may be driven more by speculative derivatives trading than broad-based investor conviction.

Investors considering exposure should monitor the stock’s ability to sustain levels above ₹100 post-expiry and watch for any fundamental developments that could validate the technical optimism. Risk management remains paramount given the mixed signals.

Outlook and Strategic Implications

GMR Airports Ltd’s current market dynamics exemplify how derivatives markets can signal shifts in investor sentiment ahead of underlying price moves. The heavy call option interest at the ₹100 strike price ahead of the 24 February expiry suggests that traders are positioning for a breakout, potentially catalysed by positive sector developments or company-specific news.

However, the company’s mid-cap status and recent rating downgrade imply that any sustained rally will require fundamental improvements. Investors should consider integrating options data with broader financial analysis and sector trends to make informed decisions.

Given the stock’s liquidity and active options market, it remains an attractive candidate for tactical trades, but a cautious approach is advisable until clearer confirmation of trend reversal emerges.

Summary

In summary, GMR Airports Ltd is currently the focal point of bullish call option activity, with significant volume and turnover concentrated at the ₹100 strike price for the imminent expiry. The stock’s recent outperformance and technical positioning support a near-term positive outlook, though fundamental concerns and a recent downgrade temper enthusiasm. Investors should balance the promising technical signals with underlying risks and monitor developments closely as expiry approaches.

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