Hindustan Unilever Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Intense Put Option Trading on December Expiry

Data from the derivatives segment reveals that Hindustan Unilever Ltd (HINDUNILVR) has witnessed substantial put option volumes for the 30 December 2025 expiry. The most actively traded put contracts are clustered around strike prices of ₹2200, ₹2240, and ₹2260, with the underlying stock price hovering at ₹2256.8 at the time of analysis.

The strike price of ₹2200 recorded the highest number of contracts traded at 4,325, accompanied by an open interest of 1,399 contracts. The ₹2260 strike followed closely with 4,267 contracts traded and an open interest of 994, while the ₹2240 strike saw 3,612 contracts traded with an open interest of 880. Turnover figures for these strikes are notable, with ₹392.73 lakhs at ₹2260, ₹254.10 lakhs at ₹2240, and ₹167.64 lakhs at ₹2200, indicating active participation and liquidity in these strikes.

Price Performance and Market Context

On the trading day under review, Hindustan Unilever’s stock price underperformed its FMCG sector peers by 1.39%, registering a decline of 1.89% compared to the sector’s 0.63% fall. The stock touched an intraday low of ₹2244.7, marking a 2.64% dip from previous levels. This movement places the stock below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish technical setup.

Investor participation appears to be waning, with delivery volumes on 11 December recorded at 8.41 lakh shares, reflecting a 54.87% reduction against the five-day average delivery volume. Despite this, liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹11.29 crore based on 2% of the five-day average traded value.

Bearish Positioning and Hedging Strategies

The concentration of put option activity at strike prices slightly below and above the current market price suggests that market participants are positioning for potential downside or are seeking protection against further declines. The open interest data indicates that traders are maintaining significant exposure in these strikes, possibly as a hedge against existing long positions or as speculative bets on price weakness.

Given the stock’s trading below all major moving averages, the option market’s activity aligns with a cautious outlook. The December expiry date is approaching, and the clustering of put contracts near the ₹2200 to ₹2260 range highlights a zone of interest where investors may expect price support or resistance to emerge.

Market Capitalisation and Sectoral Context

Hindustan Unilever Ltd is a large-cap company with a market capitalisation of approximately ₹5,40,606 crore, operating within the FMCG sector. The sector itself has experienced mixed performance, with Hindustan Unilever’s recent underperformance relative to its peers and the broader Sensex, which recorded a positive 0.24% return on the same day.

This divergence between the stock and the broader market indices may be contributing to the cautious sentiment observed in the options market, as investors weigh sectoral dynamics alongside company-specific factors.

Implications for Investors

For investors and traders, the heightened put option activity in Hindustan Unilever signals a period of increased caution. The strike prices with the most open interest and turnover provide insight into the price levels where market participants are focusing their risk management efforts.

Those holding long positions may consider the put option strikes as reference points for potential downside protection, while speculative traders might view the activity as an opportunity to capitalise on expected volatility around the December expiry.

It is also important to monitor the evolving price action and volume trends in the underlying stock, as well as broader sector and market movements, to better understand the context of this options market behaviour.

Conclusion

Hindustan Unilever’s options market activity ahead of the 30 December 2025 expiry highlights a significant focus on put contracts at strike prices near the current market level. This pattern reflects a cautious or bearish stance among investors, supported by the stock’s technical positioning below key moving averages and its relative underperformance within the FMCG sector.

As expiry approaches, the interplay between price movements and option open interest will be critical to watch for indications of market sentiment shifts or confirmation of prevailing trends.

Only ₹14,999 - Get MojoOne + Stock of the Week for 2 Years PLUS 6 Months FREE Claim 83% OFF →