Put Option Activity and Market Context
On 18 December 2025, HDFC Asset Management Company (HDFCAMC) recorded a significant volume of put option contracts, with 2,540 contracts traded for the expiry date of 30 December 2025. This activity generated a turnover of ₹268.15 lakhs and an open interest of 1,398 contracts at the ₹2,700 strike price. The underlying stock price stood at ₹2,692.20, just below the strike, indicating that investors may be positioning for potential downside or seeking protection against near-term volatility.
The put option volume notably outpaced typical trading levels, suggesting a heightened focus on downside risk management or speculative bearish bets. The strike price of ₹2,700 is close to the current market price, which often attracts more active option trading due to its sensitivity to price fluctuations.
Price Performance and Technical Indicators
HDFC Asset Management Company’s stock price underperformed its sector on the day, registering a decline of 1.00%, while the Capital Markets sector advanced by 0.47% and the Sensex gained 0.57%. This relative weakness may have contributed to the increased put option interest as investors seek to hedge or capitalise on potential further declines.
Technical analysis reveals a mixed picture: the stock price is above its 5-day, 20-day, and 200-day moving averages, indicating some underlying strength in the short and long term. However, it remains below the 50-day and 100-day moving averages, which could be interpreted as resistance levels that the stock has yet to overcome. This technical setup may be encouraging cautious positioning through put options.
Investor Participation and Liquidity
Investor engagement in HDFC Asset Management Company has shown signs of rising interest. Delivery volume on 18 December reached 7.3 lakh shares, marking a 23.37% increase compared to the five-day average delivery volume. This uptick in delivery volume suggests that more investors are taking longer-term positions in the stock, which could be influencing option market dynamics.
Liquidity remains adequate for sizeable trades, with the stock’s traded value averaging around ₹7.01 crore over five days, representing approximately 2% of the average traded value. This level of liquidity supports active options trading without excessive price impact, facilitating the observed surge in put option contracts.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Market Capitalisation and Sector Positioning
HDFC Asset Management Company is classified within the Capital Markets industry and sector, with a market capitalisation of approximately ₹1,16,661 crore, placing it in the mid-cap category. This sizeable market cap reflects its established presence in asset management and the broader financial services ecosystem.
The stock’s recent performance relative to its sector and the broader market suggests a divergence that may be influencing option market behaviour. While the sector and Sensex posted gains, HDFCAMC’s price movement was negative, potentially prompting investors to seek downside protection or speculative opportunities through put options.
Expiry Patterns and Investor Sentiment
The concentration of put option activity at the 30 December 2025 expiry date indicates that market participants are focusing on near-term developments. This expiry is the last for the calendar year, often a period when investors reassess portfolios and hedge against year-end volatility or reposition for the new year.
The strike price of ₹2,700, close to the current underlying price, is a critical level where investors may expect price support or resistance. The elevated open interest at this strike suggests that many traders have established positions that could influence price dynamics as expiry approaches.
Implications for Investors and Traders
The surge in put option contracts on HDFC Asset Management Company highlights a cautious or bearish sentiment among some market participants. Investors holding the stock may view these options as a hedge against potential downside, while speculators might be positioning for a price correction.
Given the stock’s mixed technical signals and recent underperformance relative to its sector, monitoring option market activity can provide valuable insights into evolving market expectations. The liquidity and rising delivery volumes further support active trading and investor interest in this mid-cap capital markets stock.
Get the full story on HDFC Asset Management Company ! Our detailed research dives into fundamentals, sector comparison, technical analysis, and valuations for this Capital Markets mid-cap. Make informed decisions!
- - Full research story
- - Sector comparison done
- - Informed decision support
Conclusion
HDFC Asset Management Company’s prominent put option activity ahead of the December 2025 expiry reflects a market environment where investors are actively managing risk or expressing bearish views. The strike price concentration near the current market level, combined with the stock’s recent price underperformance relative to its sector and the Sensex, underscores a cautious market stance.
Investors and traders should continue to monitor option market trends alongside price and volume data to gauge sentiment shifts and potential price movements. The stock’s liquidity and rising investor participation further enhance its attractiveness for active trading strategies in the capital markets space.
Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Claim Your Free Year →
