Put Option Activity Highlights
On 26 December 2025, Hindustan Zinc recorded the highest number of put option contracts traded among its peers, with 3,261 contracts exchanged at the 630 strike price. This activity generated a turnover of approximately ₹20.97 crores, reflecting substantial investor interest in downside protection or speculative bearish bets. The open interest for these put options stands at 1,224 contracts, indicating a sizeable outstanding position that may influence price dynamics as expiry approaches.
The underlying stock price at the time was ₹639.3, slightly above the put strike price, suggesting that these options could be used as a hedge against potential near-term declines or as a speculative instrument anticipating a price correction. The expiry date of 30 December 2025 is imminent, which often leads to heightened option activity as traders adjust their positions ahead of contract settlement.
Price Performance and Market Context
Contrary to the heavy put option activity, Hindustan Zinc’s share price has exhibited a bullish trend over recent sessions. The stock touched an intraday high of ₹646.5 on the day of reporting, marking a new 52-week peak. It opened with a gap up of 3.22% and has recorded a consecutive four-day gain, accumulating an 8.31% return during this period. This price action aligns with the broader Non-Ferrous Metals sector, which gained 2.32% on the same day, while the Sensex declined by 0.19%, highlighting sector-specific strength.
Further technical indicators support the positive momentum, with Hindustan Zinc trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Such positioning typically reflects sustained buying interest and a favourable medium to long-term outlook among market participants.
Liquidity and Investor Participation
Liquidity metrics suggest that Hindustan Zinc remains a highly tradable stock, with a delivery volume of 38.83 lakh shares recorded on 24 December 2025. However, this figure represents a 12% decline compared to the five-day average delivery volume, indicating a slight reduction in investor participation. Despite this, the stock’s traded value supports a trade size of approximately ₹15.52 crores based on 2% of the five-day average traded value, confirming its capacity to absorb sizeable transactions without significant price disruption.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Interpreting the Put Option Interest
The concentration of put option trades at the 630 strike price, just below the current market price, suggests that investors are positioning for potential downside risk or seeking to hedge existing long exposures. The open interest level indicates that these positions are not merely speculative but may represent strategic risk management ahead of the contract expiry.
Given the stock’s recent upward trajectory and new highs, the put option activity could reflect cautious sentiment among traders who anticipate possible short-term volatility or profit-taking. Alternatively, it may signal institutional hedging to protect gains accumulated over the past weeks.
Sector and Market Comparison
Within the Non-Ferrous Metals sector, Hindustan Zinc’s performance is broadly in line with sectoral gains, which stood at 2.32% on the reporting day. The stock’s 1-day return of 2.13% closely mirrors the sector’s movement, underscoring its role as a key player in this segment. The Sensex’s marginal decline of 0.19% on the same day highlights the stock’s relative strength amid broader market fluctuations.
Market Capitalisation and Industry Position
Hindustan Zinc is classified as a large-cap company with a market capitalisation of approximately ₹2,69,638.73 crores. Operating within the Non-Ferrous Metals industry, the company’s scale and sectoral positioning contribute to its liquidity and investor interest, making it a focal point for options market activity and price movements.
Considering Hindustan Zinc ? Wait! SwitchER has found potentially better options in Non - Ferrous Metals and beyond. Compare this large-cap with top-rated alternatives now!
- - Better options discovered
- - Non - Ferrous Metals + beyond scope
- - Top-rated alternatives ready
Outlook and Expiry Considerations
As the 30 December 2025 expiry date approaches, the put option positions may influence price volatility, especially if the stock price approaches or falls below the 630 strike level. Traders holding these options will be closely monitoring price movements to determine whether to exercise, roll over, or close their positions.
Meanwhile, the underlying stock’s sustained gains and technical strength suggest that any downward pressure may be limited or short-lived. Investors and traders should watch for shifts in open interest and volume in both options and the cash market to gauge evolving market sentiment.
Conclusion
Hindustan Zinc’s prominent put option activity at the 630 strike price, combined with its recent price highs and sectoral alignment, paints a nuanced picture of market positioning. While the options data points to cautious or bearish hedging, the underlying stock’s performance reflects ongoing investor confidence and momentum. This duality underscores the importance of monitoring both derivatives and cash market indicators to fully understand the stock’s near-term trajectory.
Investors should remain attentive to expiry dynamics and sector trends as they assess Hindustan Zinc’s evolving market landscape in the final days of December 2025.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
