Hindustan Zinc Sees Robust Call Option Activity Ahead of December Expiry

Overview of Call Option Trading

Data from the derivatives segment reveals that Hindustan Zinc’s call options expiring on 30 December 2025 have recorded substantial volumes across multiple strike prices. The strike prices with the highest number of contracts traded include ₹560, ₹575, ₹580, ₹590, and ₹600, reflecting a broad spectrum of bullish sentiment among market participants.

Specifically, the ₹580 strike price leads with 5,728 contracts traded, followed by the ₹600 strike with 3,980 contracts. The ₹590 strike also shows strong activity with 3,864 contracts, while the ₹560 and ₹575 strikes have recorded 3,771 and 3,420 contracts respectively. This distribution indicates a clustering of interest slightly above the current underlying price, suggesting traders are positioning for a potential price rise beyond the ₹566.0 mark.

Open Interest and Turnover Insights

Open interest figures further corroborate the active positioning in these call options. The ₹590 strike price holds the highest open interest at 3,555 contracts, closely followed by ₹600 with 3,228 contracts and ₹580 at 3,139 contracts. The ₹560 and ₹575 strikes maintain open interest levels of 2,218 and 1,382 contracts respectively. These numbers highlight sustained interest and potential accumulation of bullish bets as expiry approaches.

Turnover data also reflects significant capital deployment in these options. The ₹560 strike has generated the highest turnover at approximately ₹1000.58 lakhs, indicating strong liquidity and trader engagement. The ₹580 strike follows with ₹893.94 lakhs, while the ₹575, ₹590, and ₹600 strikes have turnover values of ₹619.63 lakhs, ₹436.89 lakhs, and ₹332.51 lakhs respectively. This turnover pattern suggests active trading and a willingness among investors to pay premiums for upside exposure.

Price Performance and Market Context

Hindustan Zinc’s recent price action supports the observed option market activity. The stock has recorded a new 52-week high of ₹571.8, reflecting positive momentum. Over the last five trading sessions, the stock has delivered a cumulative return of 16.31%, indicating sustained buying interest. On the day of analysis, the stock’s price moved by 0.96%, outperforming the sector’s 0.10% gain and contrasting with the Sensex’s decline of 0.49%.

Technical indicators show that Hindustan Zinc is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a strong upward trend. Additionally, delivery volumes have surged, with 94.06 lakh shares delivered on 12 December, representing a 167.01% rise compared to the five-day average. This increase in investor participation underscores growing conviction in the stock’s near-term prospects.

Liquidity and Market Capitalisation

The stock’s liquidity profile is robust, with the capacity to handle trade sizes of approximately ₹19.48 crore based on 2% of the five-day average traded value. Hindustan Zinc’s market capitalisation stands at ₹2,37,188 crore, categorising it as a large-cap stock within the non-ferrous metals sector. This stature often attracts institutional interest, which can influence option market dynamics.

Expiry Patterns and Strike Price Distribution

The concentration of call option activity around the ₹580 to ₹600 strike prices for the 30 December 2025 expiry suggests that traders are positioning for a price move above the current ₹566 level within the next two weeks. The clustering of open interest and turnover at these strikes indicates that market participants are anticipating potential upside catalysts or are hedging existing positions with a bullish bias.

Such expiry patterns are typical when a stock is in an upward trajectory, as investors seek to capitalise on expected gains while managing risk through options. The relatively high open interest at strikes above the current price also points to a possible resistance zone where profit-taking or defensive strategies might emerge as expiry nears.

Implications for Investors and Traders

The active call option market for Hindustan Zinc reflects a prevailing bullish sentiment among traders, who appear to be positioning for further price appreciation ahead of the December expiry. The strike price distribution and open interest levels suggest that the ₹580 to ₹600 range is a key focus area, potentially serving as a target zone or resistance level.

Investors should consider the stock’s recent price momentum, delivery volume trends, and technical positioning when analysing these option market signals. While the data points to optimism, it is prudent to monitor broader market conditions and sectoral developments in non-ferrous metals, which can influence Hindustan Zinc’s trajectory.

Moreover, the liquidity and market capitalisation of Hindustan Zinc provide a conducive environment for both institutional and retail participation, which can sustain the observed option market activity. Traders utilising options should remain aware of expiry dynamics and the potential for volatility as the 30 December date approaches.

Conclusion

Hindustan Zinc’s derivatives market activity ahead of the December 2025 expiry highlights significant interest in call options, particularly at strike prices above the current underlying value. This pattern aligns with the stock’s recent price gains and technical strength, signalling a market expectation of continued upward movement. Investors and traders should weigh these factors alongside broader market signals to make informed decisions in the coming weeks.

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