Overview of Call Option Activity
Data from the derivatives segment indicates that Hindustan Aeronautics has attracted substantial volumes in call options with expiry on 25 November 2025. The most actively traded strike prices are ₹4,500, ₹4,550, and ₹4,600, all above the current underlying stock price of ₹4,441.0. This clustering of activity suggests a market expectation or hedging strategy oriented towards a price rise beyond these levels within the near term.
Specifically, the ₹4,500 strike call option recorded the highest number of contracts traded at 6,245, generating a turnover of approximately ₹86.84 lakhs and an open interest of 2,406 contracts. The ₹4,550 strike followed with 4,845 contracts traded, turnover of ₹22.82 lakhs, and open interest of 1,899 contracts. The ₹4,600 strike saw 2,865 contracts traded, turnover of ₹5.59 lakhs, and open interest of 1,829 contracts. These figures highlight a strong preference for near-the-money and slightly out-of-the-money call options among market participants.
Price and Volume Context
On the day of analysis, Hindustan Aeronautics’ stock price showed a marginal change of 0.11%, underperforming its sector by 0.54%. The stock traded within a narrow range of ₹31.9, indicating limited intraday volatility. Notably, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a subdued price momentum in the short to long term.
Investor participation has seen a marked rise, with delivery volumes on 24 November reaching 15.5 lakh shares, a 191.84% increase compared to the five-day average delivery volume. This surge in delivery volume suggests heightened interest in the stock, potentially linked to the derivatives activity and upcoming expiry.
Liquidity conditions remain favourable, with the stock’s traded value supporting trade sizes up to ₹14.15 crore based on 2% of the five-day average traded value. This level of liquidity is conducive for institutional and retail investors engaging in sizeable transactions.
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Market Capitalisation and Sector Positioning
Hindustan Aeronautics is classified as a large-cap stock with a market capitalisation of approximately ₹2,97,137 crore. Operating within the Aerospace & Defense industry and sector, the company holds a significant position in India’s strategic manufacturing and defence supply chain. The stock’s performance relative to its sector and the broader Sensex index reflects the nuanced market dynamics affecting aerospace and defence equities.
While the stock’s one-day return stood at 0.00%, the sector recorded a 0.87% gain and the Sensex a modest 0.06% increase. This relative underperformance may be influencing the cautious but active call option positioning, as investors weigh potential catalysts against prevailing market headwinds.
Expiry Patterns and Investor Sentiment
The concentration of call option contracts at strike prices between ₹4,500 and ₹4,600 for the 25 November expiry suggests a strategic focus on short-term price movements. Open interest levels indicate that many positions remain open, which could lead to increased volatility as expiry approaches and traders adjust or close their positions.
Such activity often reflects a combination of speculative bets and hedging strategies by institutional investors, traders, and market makers. The preference for call options above the current stock price points to a cautiously optimistic outlook, with market participants positioning for potential upside while managing risk exposure.
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Technical Indicators and Trading Outlook
From a technical perspective, Hindustan Aeronautics’ position below all major moving averages suggests that the stock is currently in a consolidation or correction phase. The narrow trading range and increased delivery volumes may indicate accumulation or distribution by market participants ahead of key events or announcements.
Investors and traders monitoring the stock should consider the interplay between the derivatives market activity and the underlying price action. The elevated open interest in call options at higher strike prices could act as a price magnet or resistance zone, depending on how the stock price interacts with these levels in the coming days.
Given the stock’s liquidity and market cap, it remains a viable candidate for both short-term trading strategies and longer-term portfolio considerations within the Aerospace & Defense sector.
Conclusion
Hindustan Aeronautics Ltd is currently experiencing significant call option trading activity concentrated around strike prices above the current market price, signalling a degree of bullish positioning ahead of the 25 November 2025 expiry. While the stock’s price momentum remains subdued relative to its sector and broader market indices, increased delivery volumes and liquidity support active market participation.
Investors should closely monitor the evolving open interest and volume patterns in the options market, alongside technical indicators, to gauge potential price movements and risk factors. The interplay between derivatives positioning and underlying stock performance will be critical in shaping the near-term outlook for Hindustan Aeronautics.
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