Put Option Activity Highlights
Data from the derivatives market reveals that Hindustan Unilever Ltd (HINDUNILVR) has attracted substantial interest in put options expiring on 30 December 2025. The most actively traded put contracts are clustered around strike prices of ₹2400, ₹2380, and ₹2360, all slightly above or near the current underlying value of ₹2367.8. Specifically, the ₹2360 strike saw the highest number of contracts traded at 9,462, followed closely by the ₹2380 strike with 8,979 contracts and the ₹2400 strike with 8,857 contracts.
The turnover for these strikes is noteworthy, with ₹1,665.47 lakhs recorded at the ₹2400 strike, ₹1,330.96 lakhs at ₹2380, and ₹1,138.56 lakhs at ₹2360. Open interest figures also indicate sustained positions, with 298 contracts open at ₹2400, 270 at ₹2360, and 202 at ₹2380. This concentration of put option activity near the current stock price suggests that market participants are positioning for potential downside or are seeking protection against further declines.
Price Performance and Market Context
On 4 December 2025, Hindustan Unilever’s stock price touched an intraday low of ₹2,286.7, representing a decline of 7.13% from recent levels. The stock underperformed its FMCG sector peers by 2.12% on the same day, with a one-day return of -3.90% compared to the sector’s -1.69%. Meanwhile, the broader Sensex index recorded a marginal positive return of 0.18%, highlighting the stock’s relative weakness.
Technical indicators reinforce this bearish tone, as Hindustan Unilever is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This persistent downward pressure across multiple timeframes may be contributing to the increased demand for put options as investors seek downside protection or speculate on further price declines.
Investor participation has also shown signs of rising caution. Delivery volume on 4 December reached 18.39 lakh shares, a 25.19% increase compared to the five-day average delivery volume. This heightened activity suggests that investors are actively adjusting their positions amid the evolving market conditions.
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Implications of Put Option Concentration
The clustering of put option contracts near the current trading price of Hindustan Unilever indicates a market expectation of potential price weakness or increased volatility in the near term. Put options serve as a tool for investors to hedge existing long positions or to speculate on downward price movements. The sizeable open interest and turnover at strikes ₹2360 to ₹2400 suggest that a significant number of market participants are either protecting their portfolios or positioning for a bearish scenario.
Given the stock’s large market capitalisation of approximately ₹5,69,541 crore and its status as a major FMCG player, such option market behaviour is noteworthy. It reflects a shift in market assessment towards caution, possibly influenced by broader sectoral pressures or company-specific factors.
Liquidity and Trading Dynamics
Hindustan Unilever’s liquidity profile supports active trading, with the stock’s traded value comfortably accommodating trade sizes up to ₹11.76 crore based on 2% of the five-day average traded value. This liquidity facilitates the execution of sizeable option and equity trades, enabling investors to implement complex hedging or speculative strategies efficiently.
The weighted average price of traded shares on recent sessions has gravitated closer to the stock’s intraday lows, indicating that higher volumes are transacting at lower price levels. This pattern often signals selling pressure or profit-taking, which aligns with the increased put option interest observed.
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Sectoral and Market Comparison
Within the FMCG sector, Hindustan Unilever’s recent performance contrasts with the broader market trends. While the Sensex has shown modest gains, the stock’s relative underperformance and the sector’s own negative returns highlight the challenges faced by consumer goods companies amid changing economic conditions. The put option activity may also reflect concerns about consumer demand, input cost pressures, or competitive dynamics impacting the company’s near-term outlook.
Investors and market watchers will be closely monitoring the stock’s price action and option market developments as the December expiry approaches. The interplay between equity performance and derivatives positioning often provides valuable insights into market sentiment and potential price trajectories.
Conclusion
Hindustan Unilever’s elevated put option volumes and open interest near current price levels underscore a cautious market stance. The stock’s trading below key moving averages, coupled with increased delivery volumes and turnover concentrated at lower strikes, suggests that investors are actively managing risk amid uncertain conditions. While the company remains a heavyweight in the FMCG sector, the option market data points to a period of heightened vigilance and potential volatility in the coming weeks.
Market participants should consider these factors when analysing Hindustan Unilever’s stock and its role within diversified portfolios, especially in the context of broader sectoral and macroeconomic developments.
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