Put Option Trading Highlights
Data from recent trading sessions reveals that HDFC Bank’s put options with expiry on 30 December 2025 have attracted substantial volumes. The strike prices ranging from ₹970 to ₹1000 have seen the most active trading, with the highest number of contracts at the ₹1000 strike. Specifically, 4,472 contracts were traded at this strike, generating a turnover of approximately ₹475.19 lakhs and an open interest of 4,437 contracts. This level of open interest indicates a strong interest in downside protection or speculative bearish bets near the current underlying value of ₹987.0.
Other notable strike prices include ₹990, where 2,881 contracts changed hands with a turnover of ₹229.92 lakhs and an open interest of 1,605 contracts. The ₹980 strike also saw considerable activity, with 2,538 contracts traded, turnover of ₹146.57 lakhs, and open interest standing at 1,826 contracts. Lower strike prices such as ₹985 and ₹970 recorded 1,533 and 1,450 contracts traded respectively, with turnovers of ₹105.06 lakhs and ₹58.86 lakhs.
Expiry Patterns and Market Implications
The concentration of put option activity around the ₹980 to ₹1000 strike prices, all expiring on 30 December 2025, suggests that market participants are positioning themselves for potential downside risk in the near term. The underlying stock price at ₹987.0 is currently trading close to its 52-week high of ₹1020.5, just 3.14% away, which may be prompting investors to hedge their exposure or speculate on a pullback.
Open interest figures further reinforce this view, with the highest open interest at the ₹1000 strike, indicating that many traders are either buying puts as insurance or selling them to collect premium, depending on their market outlook. The sizeable turnover at these strikes also points to active liquidity and interest in managing risk around these price levels.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Stock Price and Market Context
HDFC Bank’s stock price has experienced a mild downward trend over the past three days, with a cumulative return of -1.99% during this period. The stock closed at ₹987.0, underperforming its sector by -0.44% and the broader Sensex by -1.15% on the most recent trading day. Despite this short-term weakness, the stock remains above its 50-day, 100-day, and 200-day moving averages, although it trades below the 5-day and 20-day averages, indicating some near-term pressure.
Investor participation appears to be moderating, as delivery volume on 1 December was recorded at 1.06 crore shares, reflecting a decline of 33.03% compared to the five-day average delivery volume. Liquidity remains adequate, with the stock capable of supporting trade sizes up to ₹43.19 crore based on 2% of the five-day average traded value.
Bearish Positioning and Hedging Strategies
The elevated put option activity at strike prices near the current market price suggests that investors are either hedging existing long positions or speculating on a potential correction. Put options serve as a form of insurance against price declines, and the concentration of open interest at the ₹1000 and ₹990 strikes indicates that these levels are viewed as critical thresholds for downside risk management.
Such positioning is common ahead of key expiry dates, as traders adjust their portfolios to manage risk or capitalise on anticipated volatility. The December expiry is particularly significant as it marks the end of the calendar year, a period often associated with portfolio rebalancing and strategic adjustments.
Get the full story on HDFC Bank .! Our detailed research dives into fundamentals, sector comparison, technical analysis, and valuations for this Private Sector Bank large-cap. Make informed decisions!
- - Full research story
- - Sector comparison done
- - Informed decision support
Sector and Market Capitalisation Overview
HDFC Bank operates within the private sector banking industry and is classified as a large-cap stock with a market capitalisation of approximately ₹15,42,174 crore. Its performance relative to the sector and broader market indices is closely monitored by investors, given its significant weight and influence.
While the stock has traded in a relatively narrow range of ₹6.8 recently, the ongoing put option activity highlights a divergence between the underlying price stability and market participants’ cautious stance. This dynamic underscores the importance of monitoring derivatives data alongside price movements to gain a comprehensive view of market sentiment.
Investor Takeaways
For investors in HDFC Bank, the current options market activity signals a period of heightened attention to downside risk. The concentration of put contracts near the ₹1000 strike price, coupled with the stock’s recent price behaviour, suggests that market participants are preparing for potential volatility as the December expiry approaches.
Those holding long positions may consider the implications of this hedging activity, while traders looking to capitalise on volatility might find opportunities in the options market. The stock’s proximity to its 52-week high and its position relative to key moving averages provide additional context for assessing risk and reward.
Overall, the data points to a nuanced market environment where cautious optimism is tempered by prudent risk management strategies.
Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →
