HCL Technologies Sees Heavy Put Option Activity Ahead of November Expiry

On 19 November 2025, HCL Technologies recorded a delivery volume of 34.98 lakh shares, marking a 139.06% rise compared to its five-day average delivery volume. This heightened investor participation coincides with the stock trading above its key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — suggesting underlying technical strength. However, the stock’s one-day return of -0.69% contrasts with the sector’s 0.30% gain and the Sensex’s 0.17% rise, indicating some short-term pressure.

The put options data reveals that 2,957 contracts were traded at the 1640 strike price for expiry on 25 November 2025, with a turnover of ₹12.23 crore and an open interest of 1,375 contracts. The underlying stock price stood at ₹1,650.60, placing the 1640 strike slightly out-of-the-money. This level of put activity suggests that market participants are either hedging existing long positions or speculating on a potential near-term correction.

HCL Technologies, a large-cap player in the Computers - Software & Consulting sector with a market capitalisation of ₹4,51,472 crore, also offers a dividend yield of 3.61% at current prices. The stock’s liquidity is sufficient to support trades up to ₹9.68 crore based on 2% of its five-day average traded value, making it accessible for institutional and retail investors alike.

Examining the broader context, the put option interest in HCL Technologies stands out within the Computers - Software & Consulting sector, where the stock’s performance today underperformed the sector by 0.59%. The divergence between the stock’s technical indicators and option market activity may reflect a cautious sentiment among traders, possibly due to upcoming corporate events or macroeconomic uncertainties.

Put options serve as a common instrument for hedging downside risk or expressing bearish views. The concentration of open interest at the 1640 strike price, close to the current market price, indicates that investors are positioning for a potential price decline or protecting gains in a volatile environment. This is particularly relevant given the proximity of the expiry date, which often sees increased option activity as traders adjust their portfolios.

While the stock’s moving averages suggest a positive medium- to long-term trend, the short-term price movement and option market data imply that some investors are preparing for possible near-term corrections. This duality highlights the complexity of market dynamics where technical strength coexists with cautious sentiment.

Investors monitoring HCL Technologies should note the interplay between the stock’s technical indicators and the option market’s positioning. The elevated put option volume and open interest at a strike price near the current market level suggest that downside protection is a priority for many market participants. This may be driven by concerns over sector-specific challenges or broader market volatility as the expiry date approaches.

Furthermore, the stock’s dividend yield of 3.61% remains attractive in the current interest rate environment, potentially providing a cushion for long-term investors. However, the recent one-day price movement and option activity underscore the importance of closely watching price action and market sentiment in the coming days.

In summary, HCL Technologies is currently experiencing significant put option trading activity, reflecting a nuanced market view that balances technical strength with cautious positioning. Investors and traders should consider these factors when evaluating their exposure to this large-cap software and consulting stock, especially as the 25 November 2025 expiry approaches.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →