HDFC Bank Sees Robust Call Option Activity Ahead of December Expiry

Call Option Trading Highlights

Data from the derivatives segment indicates that HDFC Bank’s call options with a strike price of ₹1,000 expiring on 30 December 2025 have been the most actively traded. A total of 8,131 contracts exchanged hands, generating a turnover of approximately ₹504.45 lakhs. The open interest for these contracts stands at 11,258, signalling a substantial build-up of positions ahead of the expiry date.

This level of activity suggests a strong focus on the ₹1,000 strike, which is close to the current underlying stock price of ₹992.40. The proximity of the strike price to the spot price often attracts speculative and hedging interest, as traders position themselves for potential price movements in the final days of the month.

Stock Price Context and Recent Performance

HDFC Bank’s stock price is currently trading approximately 2.85% below its 52-week high of ₹1,020.50, indicating that the stock remains near its peak levels over the past year. Despite this, the stock has experienced a modest decline over the last two trading sessions, with a cumulative return of -0.93% during this period. The day-on-day change recorded on 15 December 2025 was -0.41%, slightly outperforming the private sector bank sector’s decline of -0.64% and the broader Sensex’s fall of -0.56% on the same day.

The stock has traded within a narrow range of ₹7.30 recently, reflecting a period of consolidation. Its price remains above the 100-day and 200-day moving averages, which often serve as long-term support levels, but below the shorter-term 5-day, 20-day, and 50-day moving averages. This mixed technical picture may be influencing option traders’ strategies as they weigh potential near-term volatility.

Investor Participation and Liquidity Considerations

Delivery volume on 15 December 2025 was recorded at 57.48 lakh shares, representing a decline of 36.91% compared to the five-day average delivery volume. This reduction in investor participation could indicate a cautious stance among shareholders amid recent price fluctuations. Nevertheless, the stock maintains sufficient liquidity, with the capacity to support trade sizes up to ₹26.77 crore based on 2% of the five-day average traded value, ensuring that both spot and derivatives markets remain accessible for active participants.

Market Sentiment Reflected in Option Positions

The concentration of call option contracts at the ₹1,000 strike price suggests a bullish tilt among option traders, who may be anticipating a recovery or upward movement in HDFC Bank’s share price before the expiry. The open interest figure of 11,258 contracts indicates that a sizeable number of traders are holding positions that could benefit from a price rise above this strike level.

Given the underlying stock price of ₹992.40, the ₹1,000 strike is near-the-money, making these call options sensitive to price changes. Traders often use such strikes to capitalise on expected volatility or directional moves, and the turnover of over ₹500 lakhs underscores the significant capital flow into these positions.

Sector and Market Comparison

Within the private sector banking space, HDFC Bank remains one of the largest market capitalisation stocks, valued at approximately ₹15,32,713 crore. Its performance relative to the sector and broader indices is a key consideration for investors and traders alike. On 15 December 2025, the stock’s marginal outperformance compared to the sector’s decline may have contributed to the sustained interest in its derivatives.

Moreover, the stock’s position above long-term moving averages provides a technical foundation that may be encouraging option buyers to maintain bullish exposure, while the recent short-term weakness could be viewed as a potential entry point for speculative positions.

Expiry Patterns and Investor Positioning

As the 30 December 2025 expiry date approaches, the concentration of open interest and trading volume in call options at the ₹1,000 strike price may influence price dynamics in the underlying stock. Option writers and buyers often adjust their positions in the days leading up to expiry, which can lead to increased volatility and price swings.

Investors and traders monitoring HDFC Bank’s derivatives activity should consider the interplay between open interest, strike price proximity, and underlying price movements. The current data suggests a cautious optimism among market participants, with a focus on potential upside scenarios balanced against recent short-term price softness.

Conclusion

HDFC Bank’s derivatives market activity ahead of the December expiry highlights a significant interest in call options near the ₹1,000 strike price, reflecting a nuanced market outlook. While the stock remains close to its 52-week high and above key long-term moving averages, recent price consolidation and reduced delivery volumes indicate a measured investor approach.

Market participants should continue to monitor option open interest and turnover alongside price action to gauge evolving sentiment. The combination of strong liquidity, sector positioning, and technical factors makes HDFC Bank a focal point for both equity and derivatives traders as the year-end approaches.

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